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Help !!

Can someone please help me out here? I have just bought my daughter a new pc and want to connect via a wireless router (Netgear DG834GT) to my current broadband connection. I have followed all instructions to the letter, but when I connect to the router by typing 192.168.0.1 into the address field I start to get problems. It says I have a connected status for the internet, but won't allow me to surf. When I go into the Connection Status menu, it reads the following:
Time - 0
Connecting to server - failed
Negotiation - LCP down
Authentification - CHAP authentification failed.
In the status bar on the lower right hand side of the screen shows:
Internet Connection Status as Connected, and Local Area Connection speed as 100mbps and connected.
I am totally lost, this was supposed to be a 'plug and connect' exercise!
I am running XP, and the previous internet connection was via an Intel 3220 Modem. (I have to keep switching from the old modem to the new router to come onto the net and explain the problems)
Any assistance would be very much appreciated.
 

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When it says you're connected at the lower right hand side of the taskbar next to the time, it means that the computer sees a connection between itself and the router. The router may not be properly configured, do you have DSL or cable?
 

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Did you configure your router? You have to log in to the router by going to internet explorer and browsing to 192.168.0.1, once inside you can setup your WAN connection. It should be a PPPOE account, so you need to login name and password for you DSL account and enter them in the right fields on this config page.
 
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