Several Questions:
1. Have you updated the router to the latest firmware version? The latest firmware is V1.2.3.7NA You can check by going to the router homepage and then go to Router Status to check the firmware. You can also check via the Router Upgrade page too.
2. Don't use the setup disc first of all. It's junk. Press the reset button on the back of the router and let it cycle and let it sit for at least two minutes. This will set it back to factory default settings.
Then turn-off the router, modem and shutdown the computer. Then turn-on the modem first and let it cycle and sit for two minutes, then turn-on the router and same, then turn on your computer. See if you can connect and such.
3. Go to this address to setup up your router:
http://192.168.1.1
User Name is: admin
Password is: admin