Time Capsule - flashing amber status light - not connecting to modem router

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I have a NetComm NB6Plus4W ADSL2+ Modem Router ( NB6Plus4W Rev1: NetComm ) that I use to connect to the internet.
I have purchased an Apple Time Capsule that I intend to use as my wireless basestation now as well as for it's backup function (i.e., so I will no longer use the built in wireless on the Modem Router, I will turn this off and instead use ONLY the Time Capsule wireless).
I have followed the instructions in connected it and setting it up. I have run an ethernet cable from the Modem Router to the WAN port on the Time Capsule.
However, the front status light continues to flash amber.
According to the Setup Guide on page 11, this is when the Time Capsule is encountering a problem or can't establish a connection to the network or the Internet.
So what I have done to resolve this is to test both the ethernet cable and the Modem Router. Now I know the modem router works fine as I'm currently connected to it and using the internet through it so that I can type this up.
To test the cable I plugged it in to a Lenovo PC running Microsoft Windows Vista , the PC picked up the network and connected to the internet no dramas.
So I therefore assume the issue lies with the Time Capsule. Now I notice that when I have the ethernet cable connected between the Modem Router and Time Capsule, the light on the front of the Modem Router that illuminates when an ethernet port is connected and being used is NOT illuminating.

Any ideas?

Here is a screen shot of the screen that is displayed in AirPort Utility:


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I think the wan port is the wrong spot. I don't think it has auto-cross over detection. Since your original router is both a router and a modem - you should plug it into the ethernet port and set your TC to bridge mode. Or you could try a crossover cable and see if that works.

I have a similar setup where I have a router - that I run a TC into - and I have it plugged into an ethernet port - not the wan port.
 

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