Put the Zyxel modem in Router mode

In XP go to Start/Run, type: cmd | In Windows 98/ME so to Start/Run, type: command
enter telnet 192.168.1.1 and press enter

Now to set it as router mode, Type 1 in the “Enter Menu Selection Number:” and press enter . You should end up in the General setup menu

In order for it to be router mode make the following changes (Follow exactly what you see in the previous picture). Then press enter to save changes . (in order to modify options you must press the Space bar)
1. Route IP = Yes
2. Bridge = No
Once your back at the main menu, Type 4 in the “Enter Menu Selection Number:” and press enter. You should end up in the Internet Access Setup menu

You must have these settings in order for bridge mode: (Just look in the picture above).
1. Encapsulation = PPPoE
2. Multiplexing = LLC-Based
3. VPI/VCI = 0/35
4. Username/password (don't forget @vif.com for the username!)
Press enter to save changes. After pressing enter you should end up at the main menu, Type 11 in the “Enter Menu Selection Number:” and press enter . You should end up in the Remote Node Setup Menu

Make sure you have these settings (look at the picture above)
1. Encapsulation = PPPoE
2. Multiplexing = LLC-Based
3. VPI/VCI = 0/35
4. Bridge = NO
5. Username/password (don't forget @vif.com for the username!)
  - You have to enter the user/pass twice, once under Incoming: and the other under Outgoing:
After all that, Press enter 2 or 3 times to get to the main menu and type 99 in the “Enter Menu Selection Number:” to exit and thats it, your in router mode!

 Restart Modem and wait 1 min, it should connect to the internet automatically