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What they likely mean by that is that their logs show you passing PPPoE authentication and obtaining an IP address from them. If they can see that, then there's something wrong with your router. What model is it?
Try these steps from a PC connected to your DSL:
Open a command prompt and type the following:
ping google.com
See if you get responses. If not, try:
ping 72.14.207.99
If you get responses there, let me know.
Also, if you know how to determine your IP address and are willing to communicate it to me privately, I can see if I can successfully ping you.
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