The following diagram illustrates how the router connects to the network.

The router doesn't have a serial port and the only way to configure it is using a network connection but this is the case with many routers.
Users of Microsoft Windows should find the setup of the router even easier with the Smart Start Wizard on the CD-ROM that sets up the connection to the router via the ARP protocol making it easy to install if your local network does not currently use the 192.168.1.0/24 range of IP addresses.

With Windows XP the message "Your windows does not support this tool" message is shown. This simply means you have to configure the IP address manually and won't affect the use of the router beyond the two minutes it takes to change the IPs. If you already have an existing network, use the Smart Start Wizard to configure the router with an IP address. Otherwise, just let your computer obtain an IP using DHCP.

Once configured, you need to do some basic steps on the web setup. Go to the router's website (http://192.168.1.1 or whatever the IP you have assigned is). You will be asked for a username (admin) and password (leave blank) after which you will be presented with the main menu:

1. The first step is to give your router a system password to prevent anyone else tampering with it. Click the "Administrator Password Setup" link and set up a new password:
   
2. Once done, click OK. You can change TCP/IP and DHCP settings at this point also if required (e.g. as shown below if you want to change the IP ranges that the built-in DHCP server assigns)
   
3. Next, configure the wireless access point, whether or not you intend to use it (see more on security below).
   You need to change the SSID, configure access control lists, and if possible, set up WEP encryption.
4. ISP Connection
   The final step in the basic router configuration is to set up the connection to your ISP who will have probably have provided you with two important pieces of information, a username (something@isp-name.co.uk) and a assword (which is probably case sensitive).
   1. Click the "Internet Access Setup" option, and select "Auto Detect ATM/DSL Settings".
   2. Follow the prompts until it asks youwhether you have a fixed IP or not, at which point click Cancel. It should now have detected the settings:
   
   Settings for the BT's ADSL network

You can set/edit these manually when adding your ISP account details. Type in the ISP name as well as the Username/Password provided by them. Also, you probably want to tick the "Always On" box as there's no reason to disconnect the router when you're not using the Internet. Ignore the fixed IP settings as an ISP will send then to you each time you login anyway.

Once you have finished, click OK and then proceed to the Online Status screen (link off the main menu) to see whether you are connected. If not, click "Dial PPPoA" and wait for the screen to update. Once connected, your screen should look something like this: