It's the Linksys firmware! The new version 1.01.0 causes the problem with Macs (but not Windows PC's) To cure the problem, go to
http://www.linksys.com choose downloads from the support pulldown menu. Choose WRT54G V5.0 -- Wireless-G Broadband router, click on Downloads for this product, click firmware and click download firmware. You will download a folder that will contain version 1.00.9 firmware (you must choose the version 5 model, not V6 to get this firmware version). Then connect by ethernet to the router and change the ethernet network settings to manual, 192.168.1.50, subnet 255.255.255.0, router 192.168.1.1 and apply. Then open a browser and enter
http://192.168.1.1 to access the router. Go to the admin tab and choose subtab update and the update with the downloaded firmware. When it completes, reset the router, restart the computer, restart the modem, set your ethernet network to DCHP and apply. You may have to reset/restart everything again, but you should eventually get assigned a proper IP number and be able to connect. NOTE: THIS CURE WAS NOT SUGGESTED BY LINKSYS - use at your own risk. (But, I am posting this from the iMac that wouldn't connect an hour ago.) Note also that the release notes for the latest software (the version that doesn't properly set the IP using DHCP) say:
"Firmware 1.01.0
- Update Broadcom ethernet driver.
- Resolves DHCP server issue...."
Oops - maybe "Creates" would have been a better word than resolves.