I've been having a similar problem with my Linksys Router, a BEFSX41. The "Internet" light comes on on my router when I connect it to my DSL modem, but my Macs can't get to the internet. They can connect to each other, but that was only a secondary goal. The primary goal of course is to get my Mac online using the Linksys router (work insists on it's use to connect to their network via VPN). So, to this end I've found a few helpful things...
http://homepage.mac.com/car1son/initial_linksys_setup.html may possibly help... My problem improved (it was after this point that my computers were able to "see" eah other), but my problem isn't fully resolved... My ISP needs the connection type to be PPPoE, but on the Linksys setup page, it will only allow me to choose DHCP. The other options are there, but when I choose them the screen automatically refreshes and puts it back to DHCP. I've contacted Linksys, and they've suggested doing a firmware update... I've made it a point several times to tell them I'm working with Macs, but I've heard from others that they're not very Mac knowledgable. I won't have time to try the update firmware as a possible solution to my problem, but here's the instructions for that Linksys gave to me... It's possible it might help your problem...
Steps in upgrading the firmware:
Resetting the router:
1. Hold the reset button for 1 minute (power on). Before you let go of the reset button, unplug the power cord.
2. Connect an Ethernet cable from port 1 of the router to the back of your wired computer (the PC with the firmware)
3. Plug the power back in. Power (solid), port 1 LED’s should be lit. If not, please repeat the Step 1.
Upgrading the firmware:
1. Access the setup page of the router by typing 192.168.1.1 (default IP address of the Linksys router) on the Internet Explorer’s
address bar. Please leave the username blank, and type “admin” for the password.
2. Under the Administration tab, please click the Firmware Upgrade sub-tab. You will be given an option to browse for the .bin file on
your computer to the location to where you have downloaded and unzipped it.
3. Please click the Upgrade button. The router will start to upgrade the firmware. You will then be prompted with a message that it is
successful once the upgrade is done.
4. After upgrading the firmware. Please reset the router to its factory defaults, so that you can reconfigure it again applying the same
settings that you used for the router.
- Hold the reset button for 1 minute (power on).
- Before letting go of the reset button, unplug the power cord.
- Connect the modem back to WAN/Internet port of the router.
- Plug the power cord back in and check the LED’s.
- Power (solid), port 1, WAN LED’s should be on. If any of the following LED’s are not lit up, please repeat reset.
Configuring the router for PPPoE:
1. Access the setup page of the router by typing 192.168.1.1 (default IP address of the Linksys router) on the Internet Explorer’s
address bar. Please leave the username blank, and type “admin” for the password.
2. Change the Local IP Address into 192.168.2.1 Click on save settings.
3. Unplug the power cord of the router and turn off your PC for 20 seconds.
4. Plug the power of the router and restart your PC.
5. Access the setup page of the router using the 192.168.2.1. Use admin for the passwword.
6. Under the Setup tab, please click on the drop-down button for the Internet connection type/WAN connection type and select PPPoE
(username and password required from ISP).
7. Type the username and password from ISP on the boxes provided.
8. Select "Keep alive redial period" and leave it set to 30 seconds.
9. Click on save settings.
After following the steps above, please turn off your PC’s, router and the modem. Leave it like that for 30 seconds and plug it back in starting from the modem down to your computers.