Confused: you turned the surge protector off and then tried restarting still running through the surge protector, after turning the surge protector back on? Is the protected light, or whatever it's called, still on when you turn on the surge protector? Can you start up if you plug the Mac directly into wall power, not using the surge protector? The surge protector may have been fried.
Generally, unless it's a direct hit, a surge might fry the DSL modem and not go any further. If it was such a powerful hit, then I doubt that running the DSL line through the surge protector would have stopped it, anyway, No surge protector will stop a direct or very close hit, either through the AC or the phone line.
And DSL and phone line surge protection may not play very well together, unless the protector is specifically designed for DSL.
Best during serious lightning is to unplug the phone line from the wall jack and the surge protector powering the computer.
Message was edited by: WZZZ