1 Disconnect the Airport and connect the Mac directly to the modem
2 Log into the modem's HTML control page.
3 Set the modem, not the Airport, to bridge mode.
4 Connect the modem to the Airport and the Airport to the Mac.
5 Log into the Airport using Airport Utility.
6 Select 'Manual Setup' on the Airport Utility splash screen.
7 You should now see the Airport Utility summary screen. This should list:
the name of the Airport
the Airport's status
the version number of the Airport firmware (should be 7.4.1)
the Airport's serial number
the Airport's wireless and Ethernet MAC addresses
the wireless mode
the wireless SSID
the wireless security mode
which channel you're broadcasting on
how many people are connected wirelessly
the method in use to connect to the Internet
the IP address that AT&T has given your modem
If you don't see the above, there may be a problem. You may not see anything listed for the AT&T IP address. This will be because the router is not properly configured. You will now attempt to configure it. You may not see anything in the wireless sections. This would be because the wireless sections are not properly configured. You will also attempt to configure them.
You should click the 'Base Station' tab. This will allow you to set/reset the Airport's name, access password, and the system time. Do
not check 'Allow setup over WAN'. Allowing setup over the WAN will allow anyone who knows or guesses your Internet IP and your router name and password to change the settings on your router remotely from anywhere on the Internet, once you have an Internet connection.
You should click the 'Wireless' tab. If you want to set up a wireless network, select 'create wireless network'. Set the network SSID, the name which you have assigned the network. Set the connection mode. (The default is 802.11n(802.11g/b compatible). Unless you have a very good reason, leave it there.) You can set the channel. (The default is 'Automatic'. Unless you have a very good reason, leave it there.) You can set the wireless security. (I'd use one of the WPA settings, but that's me.) You can then enter a security password. I'd leave the Wireless Options alone.
You can click the 'Access' tab, but there's really nothing you can do there unless you want to play with MAC addresses. You don't, so I'd stay away.
You should go to the 'Internet' button on the main toolbar. This defaults to the 'Internet Connection' tab. You have AT&T, so you're using PPPoE. Select it. Enter your AT&T username and password.
You should click on the 'PPPoE' tab. Select 'Always On' for your connection. Enter AT&T's DNS servers, 68.94.156.1 and 68.94.157.1. (You can use different DNS servers if you want; OpenDNS's servers are faster than AT&T's, for example. They would be 208.67.220.220 and 208.67.222.222.) You can enter the domain name (www.att.net) if you want. I leave it blank.
You can click on the 'DHCP' tab. This will allow you to set/reset your internal network. I'd leave this alone if I were you. Apple usually sets their systems to use the Class A private network, 10.x.x.y where 'x' is a number between 0 and 255 and 'y' is a number between 1 and 254. I set mine to use a Class C private network, as the address space of a Class A is 16,777,214 IPs while that of a Class C is 254 IPs, and I have 15 nodes on my home network and don't need to be able to access 16.8 million IPs, thanks, kindly. 254 is vast overkill, but that's a low as it will go unless I start playing with CIDR and that's too much like work.
You can click on the 'NAT' tab. Make sure that the 'Enable NAT Port Mapping Protocol' checkbox is
selected. If this is not selected you will have a problem.
That's it. You will be asked to restart the router. It should restart, and it should go green this time, and you should have a valid Internet IP.