Linksys router won't connect to the internet

Ok, just got myself an ethernet modem and router. Want to connect to the internet via the router so i can get wireless internet on my laptop.

Modem - D Link DSL320T
Router- Linksys WRT54G v7
ISP - Pipex DSL Connection

I connect it all up, and I get the following indicator lights showing:
On the modem -
Power, ADSL, Ethernet (all solid)
Status (flashing)

On the router:
Power, WLAN, port number, Internet (all solid)

However when I try to connect, by going to 192.168.1.1, then going to status (which shows disconnected), I then press connect, and it says it cannot find an IP address. I have installed the router using the following guide -
http://linksys.custhelp.com/cgi-bin/linksys.cfg/php/enduser/std_adp.php?p_faqid=2210&p_created=1110937569&p_sid=btIGUT4i&p_accessibility=0&p_lva=1650&p_sp=cF9zcmNoPTEmcF9zb3J0X2J5PSZwX2dyaWRzb3J0PSZwX3Jvd19jbnQ9MSZwX3Byb2RzPTAmcF9jYXRzPSZwX3B2PSZwX2N2PSZw
Also I may add that the modem connects fine to the net without the router (hence me being able to write this) - I'm just really confused as all the appropriate indicator lights on modem/router are showing...

Any help greatly appreciated...

Thanks
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