Also how does the DSL modem connect to your PC if you connected it directly with regards to ip addressing , does it use DHCP ie it assigns an ip address automatically or do you have to assign your computer a static ip address along with subnet mask, default gateway and DNS ?

The above will determine how you configure your linksys router and instead of using the cd to configure your linksys router use the ip address of the router via a web browser to access the config page of the linksys router and configure it through the web browser with regards to wireless, wireless security and the routers setup config.

drop me a message if you need more help or give linksys a call.