Absolutely no further forward yet. I have been in regular contact with Draytek support who now have the syslog from my AE using their capture tool (syslog 4.5.0) found at
http://draytek.com/user/SupportDLUtility.php . This does not tell any more than the log on the AE and I believe the problem is the communication between the AE and the Vigor as the log did not show anything relevant to the internet connection.
Below is a procedure that Draytek sent me after mentioning other people had reported problems with the devices. There were relatively simple pictures which did not copy in but the content is the same.
My last email to Draytek was last night and I shall post a fix when I have one. Please let me know if you (or anyone else) has any suggestions as it should not be this difficult.
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Vigor 120 with Airport Extreme configuration guide
This guide is for a BT network ADSL connection with these settings:
VPI: 0
VCI: 38
Protocol: PPPoA
Username & Password required to connect
If your ISP uses other settings, please check the MPoA setup guide for the
Vigor 120 modem or contact support.
Do not connect the Vigor 120 modem up to the Airport router's WAN
port until instructed to do so.
Set up the Vigor 120 modem so that it is on and plugged into the ADSL line, do
not plug it into a PC or router yet.
Wait until the DSL light stops flashing and goes solid, that indicates that it is
ready to pass through the ADSL connection to your router.
The modem is pre-configured for standard UK ADSL connections so will not
need any further setup for an ADSL connection with the settings listed above.
Disconnect the WAN cable from your Airport router if it is currently connected
to another router / modem.
Open the Airport Utility on your computer, this can be found in Finder, under
Applications then Utilities.
Connect to the Airport router with the Airport Utility, right click its icon and
select Restart... to restart it.
Once the Airport router has restarted, access it with the Airport Utility and
select Manual Setup.
From there select the Internet option from the top menu, then on the Internet
Connection tab, configure the settings as shown below - make sure to leave
the Service Name field blank. Enter your ISP's username and password details
here.
Once you have entered those settings, click the Update button and the Airport
router will then restart - while it restarts, plug the Vigor 120 into the WAN
port.
Once the Airport router has restarted, check in the Airport Utility - click Manual
Setup and look at the summary page to check whether it shows an IP address
as highlighted below.
That should then be connected to the Internet.
Troubleshooting:
"When I try to apply the PPPoE settings, it shows an error screen and I can't
apply the changes"
This is because the Airport router has received an IP address from the 120,
please restart the Airport router with the Vigor 120 modem disconnected from
the WAN port, then configure the PPPoE settings.
“The Internet light on my Vigor 120 modem doesn't light up”
The Internet LED on the Vigor 120 modem is not used and will not light even
when there is an internet connection passing through it.
“The Airport Utility Summary page does not show an IP address”
If it does not show an IP address, try reconnecting the Airport Utility to update
the details it shows. If it still does not get an IP address, re-check the
connection settings and try restarting the Airport router once more. If that still
fails, try setting up a PPPoE connection on a PC with the Vigor 120 modem
connected to it and check whether it can establish the connection.