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Configuring a router

I need to configure my router to connect to an ISP providing cable Internet. The ISP has given me a static IP, and claims that they only need a MAC address from me in order to supply Internet.

Initially I provided the address on a PC NIC, and had Internet access, but now I would like to connect a wireless router directly and run a network. I gave the ISP the router MAC address, and tried to open a browser on the PC, but the ISP says they received no signals, and the browsers showed errors.

The router is a ZTE BAVO, model ZXV10 W300. It has a DSL port which I do not have cables for, and four standard network ports labelled LAN1-4. The wall socket for connecting to the ISP is also a standard network port for cat5 cable.

There are three pages in the router configuration that may be relevant. In the first 'Ethernet' is set for 'LAN group 1' and cannot be changed. An option exists to set 'WLAN' to either 'LAN group 1' or 'LAN group 2'. And the same two exist for a 'wizard' option.

The second page is headed 'LAN Group 1 IP Settings'. You can choose from 'unmanaged' or 'Use the following Static IP Address'. Once the latter is chosen, the following fields can be set: 'IP Address:' (currently 192.168.1.1). 'Subnet Mask:' (currently 255.255.255.0). 'Default Gateway:' (currently 192.168.1.1). 'Hostname:' (currently blank). 'Domain:' (currently blank). 'Enable DHCP Server' is disabled.

The third page is headed 'LAN Clients - To add a LAN Client, enter IP address, then click Submit.'. Here I can enter an IP address, Hostname and MAC address. I have three workstations in my network, and wonder if this is somehow relevant?

Again, the ISP claims they only need my router MAC address, and the rest is up to me. I asked for their DNS server addresses, and they say they're are unnecessary, 'everything's automatic'. I am expected to connect as a DHCP client, I think.

To answer this question, please let me know whether I am right to simply put a cat5 cable between the LAN1 port and the wall, and how I configure the router to connect to these guys. The PC did connect automatically, this router doesn't want to.
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Hi (increased points)

jkittle99 - what you say makes sense, except that I already have the (vulnerable) configuration c: suggests, (although using proxy server software, not ICS), and that suggests to me that this router is in fact capable of sharing an ethernet connection. The ISP wants to bring me on as a networked client, (albeit with my own static IP), and it is a standard network cable I need to put into the wall. So I'm not sure why my router can't be in the frontline, and can only guess that it needs some kind of configuration first.

I must need to set those configuration parameters re IPAddress etc - the ISP can't just need my router MAC address right?
Thanks for the leads, you are quite right. I have purchased a new router and am making progress now. Beginner's stuff, but here's what I learnt in case another 'beginner' is reading this:

The routing functionality in an ADSL router occurs BETWEEN the ADSL port and LAN ports. So while this ADSL router was providing some functionality to my network, that functionality was wireless 'switching' functionality only. It wasn't connecting to the ISP.

So I had to buy a cheap 'wire' router intended for Ethernet with a WAN port, and I can now plug the wireless ADSL router into that and I am both online, and using wireless. Thanks for your help.