Problems with D-Link DIR-300

I have tried resetting this, powering it off and on, updating the firmware and it still does not work right.

At the moment, I can get internet through the ethernet cable via this wireless router. I also get a wireless signal from the router but it is not connected to the internet somehow. The airport indicator in the top right shows that I am connected. But when I open "network pref's" it shows that airport is "On" and "not connected".

I use PPPoE cable internet so this router is obviously logging in with the password to the ISP because i am online with the ethernet cable via this router. But obviously the wireless part is not connected to the ISP.

At this point I am thinking that this brand new router is broken. Any other thoughts? Thanks!