my phone company tells me to put the modem in bridge mode and then I to use the Linksys router doing PPPoE and on the Linksys is where i put in my DSL key/password and my e-mail. If I replace with Time Capsule which mode do I use DHCP or Bridge?

Thanks for your response. I don't have the Time Capsule yet but saw screenshots of it on the web. Only 2 options I see are a DHCP or a Bridge button. Where is it that you look to put it into PPPoE or you don't have to?

I have the new 2012 (non-retina) MacBook Pro operating Mountain Lion 10.8.2 I just noticed this looks like you have to set up Airport on the Mac which you normallly wouldn't do with a Linksys. Is this the actual Time Capsule screeshot or the Airport untility that has to be set up? You don't need Airport setup for a Linksys and what I think I'm seeing here is not the Time Casule with the 2 buttons DHCP and Bridge button. This looks like you have to install Airport to use with Time Capsule am I right. This screenshot is of the Airport and not the Time Capsule right?

I forgot to mention even though the modem is in bridge mode and the Linksys is set to PPPoE and my DSL password and e-mail address is entered in on the Linksys right under PPPoE setting there is also a box that is checked that says DHCP on the Linksys right under PPPoE. The guy from Linksys told me to leave that checked. I forgot you don't need to set up Airport if your using a Linksys. Just connects like my old Dell did. But since that checkbox DHCP is checked on the Linksys under PPPoE then I guess your above screenshot is the equivalent to the Linksys in where under the network tab I'd have to check DHCP & NAT right. DHCP is disabled when you have the modem in bridged mode right so that you don't get double NAT right? So your screenshot above where it says under the network tab would be like on the Linksys wherer right under PPPoE it has the DHCP box checked. It would be like equivalent to that right. The settings being equivalent to the Linksys right?

Thanks for the help Bob. First thing I have to worry about is getting the Time Capsule first 😁 There won't be any double NAT right? The ISP wants everyone to bridge the modem and I guess that automatically disables DHCP on the modem because when it's put in bridge mode it acts as a dumb modem and all the authentication is done on the Linksys. You select PPPoE on Linksys and that's where you put in your DSL key & email and then a little box DHCP is checked right under PPPoE. Is this the best and most efficient way to set it up. I guess it has to be if your ISP tells you you have to bridge the modem.

It seems as though I was getting confused with the Time Capsules screenshot and the Airport that you showed me above. But what about the Time Capsule? If I use Airport to set it up will I still get that box that comes up on the Time Capsule where it show DHCP and Bridge buttons? or will that be bypassed when just strictly using the Airport? If not what and I do get the box that comes up with DHCP and Bridge on the Time Capsule what would I have to choose on that providing that whole box won't be bypassed by setting up with Airport or not?

I was getting the Time Capsule box confused with the Airport. I'ts because I don't have the Time Capsule yet and all I ever saw on the web was the Time Capsule box and finally realised that what you were showing me wasn't Time Capsule but Airport. So will this 2 button Time Capsule box be bypassed when set up like this or will a box come up from Time Capsule where even though doing PPPoE on Airport I'll still have to check either DHCP or Bridge in Time Capsule? 😁