Q: AirPort error message: invalid ip address

I just received the AirPort today

This would be the AirPort Time Capsule that you have listed below, correct?

I can't connect to the internet.

With the Time Capsule?  The Verizon router? Or both the Time Capsule and Verizon Router?

I am certain the internet is functioning.

So, if you power off the Time Capsule completely for now, are you able to connect to the Verizon router and get a good Internet connection that way?

As far as setup on the Time Capsule, you will need an Ethernet cable that will connect permanently from the Verizon router to the AirPort Time Capsule. Do you have this item at the present time?

Will the new Time Capsule be connected to the Actiontec by Ethernet or a wireless connection? Is your goal to extend the Actiontec router's wireless network with the Time Capsule?

Try the following:

• Verify that the cable coming from the Actiontec router is connected to the Time Capsule's WAN (circle-of-dots) port.
• Remove the TC from power.
• Perform a "factory default" reset on the TC. Leave the TC connected to power after the reset has completed.

After the reset, the TC will be in its "out-of-the-box" configuration which is a wireless router that will broadcast a non-secured Wi-Fi network with a network name of something like: Apple Network NNNNNN

Try accessing the TC with the AirPort Utility again. Can it get an IP address now? If not, replace the Ethernet cable with another known good one.

Thanks for the information.

Power up the Time Capsule for a few minutes

Hold in the reset button on the back of the Time Capsule (next to the AC power jack) for 7 to 8 seconds and then release

Allow a full minute for the Time Capsule to restart to a slow, blinking amber light status

Connect the Ethernet cable from one of the LAN <--> ports on the Verizon router (there will probably be 4 LAN ports....choose any one that you wish) to the WAN "O" port on the Time Capsule

Click the WiFi icon at the top of the Mac's screen

Look for a listing of New AirPort Base Station

Just below that, click on Time Capsule

The illustration below shows an AirPort Extreme.....you will see Time Capsule on your screen.

When you click on Time Capsule, that will get the setup "wizard" running. It will take a few seconds to analyze things and then present a screen that looks similar to this, except that you will see the Time Capsule pictured.

Next to Network Name.......type in a short, simple name for the wireless network that the Time Capsule will produce

Next to Base Station Name....type in a short, simple device name that you want to call the Time Capsule.  Mine is TC, for example

Next to Password.....type in a password that you will use for the wireless network and base station

Next to Verify......type in the same password again to confirm

Click Next

The wizard will set up everything for you. When you see the message of setup complete, click Done.

Now, you should be able to connect to the Time Capsule wireless network by selecting the network and entering the password, if prompted.  The Time Capsule should have a green light and a connection to the Internet.

Nice work! Glad that you got things working.