| Sounds like you've made it much more difficult than it should be.
I have a linksys router as well. And another one with a windows XP / Mac OSX enviornment at my father's office.
Make sure the mac is plugged in via the ethernet cable. I assume you've got the DSL modem hooked up to the router via ethernet as well. If not, I suggest you do so.
(you can turn off internet sharing)
Go to network in system preferences.
Leave Location set to 'Automatic'
Show should be 'Built-In Ethernet'
Make sure the 'TCP/IP' tab is selected
Configure should be set to 'DHCP'
You can leave domains and servers blank.
You do not need to use the PPoE tab with the router. So if you clicked 'Connect using PPPoE' under the PPPoE tab then deselect it. (If I say anything you already know, I'm sorry, just want to make sure)
Click apply and all should be well. You may also want to try resetting the router if this does not work.
If you have your dsl modem hooked up through your PC then your PC to the router, that will not work, you'll have to go through the router first. You can set up the router to connect to the dsl modem via PPPoE.
If you have more problems or can't get this to work post again and we'll go from there.
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