Tried. Same thing.
Just took a look at my modem and router - physically and their setups screens - modem's lights are going crazy, the online light is flickering and should always be steady, only activity should flicker :S
Edit: whole load of strange errors in my modems screen when i looked. may need a new one.
Gonna try a reset of both of them and then give it another whirl or yell at VM for kicks.
Edit: stablised, lets try it now.