Win ME Home Networking , ADSL, Wireless Router & Ethernet Port Issue

Hello:
I recently moved to a new apartment. In my old apt I was using Earthlink
ADSL, Toshiba Wireless router to connect to internet. I used to connect
using DHCP settings on the router. I had (and still have ) 2 computers -
desktop and laptop. Desktop was connected to router using Ethernet cable.
Laptop used wireless. Desktop had Win ME and Laptop had Win XP Pro. The home
networking on my desk top Win ME system was configured as "this computer
connects to internet using another computer". My ADSL speeds were very and I
never had any complaints. I used to get anywhere between 625 to 800 Kilo
bits per sec for downloads

In my new apt I have the same environment - same ISP, same router, same 2
computers but the ADSL modem was changed. Now I connect to internet using
PPPoE settings on my router.

I find that my ADSL speeds are significantly reduced - around 395 kilo bits
per second for downloads. When I asked earthlink, they said in order to look
into my issue I need to connect my computer directly to the ADSL modem and
not through a router as they do not support other routers. Mine is Toshiba.
Fair enough.

Now I am trying to connect my desktop (Win ME) computer to the ADSL modem
directly. There is only one problem - the ethernet light on the ADSL modem
is not green. I get the ADSL light and power light. So I tried to change my
home networking settings to "this computer connects to internet directly".
Even then the ethernet light is not on. When I run "IPCONFIG" I get the IP
address of the router (192.168.10.100). When I connect my computer back to
the router the ethernet light on the ADSL modem is on.

I know I am missing something very basic. Can you help me find out why my
ethernet light is not on when I am connecting to the modem directly. My
modem is Paradyne. Begfore I started using the router and home networking I
was able to connect the ADSL modem to the computer and the ethernet light
used to be on. I am thinking it is something to do with the Win ME home
networking and I do not know exactly what it is.

Would appreciate any help.

Thanks,

Chandra Madhira