I have just purchased a new linksys am300 modem which I can't get to work with my d-link dir 320 router. I know the modem is installed correctly as when the modem is plugged directly into the dektop computer I get internect connection straight away. I also know the router works as it was working fine with the old modem and have gone through all the relevant steps needed to connect to the modem.
When modem is hooked up to the router my lap top picks up the router and say that I'm connected to the interned with an excellent connection however no internet can be accessed from either lap top or desk top computer when router is connected.
Does any know if these 2 devices are compatible to not?

They are compatible, however you need to change a couple of things. DSL doesn't exactly let you hook up a modem and router in sequence and have it work without some sort of bridge. Chances are you modem isn't in bridge mode, and the login info in the router isn't consistent with the new modem.

Your best bet is to reset your router and call up your DSL company and tell them you want your router bridged to your modem. They will walk you through it step by step.

Basically you set up your modem to PPPoE mode and turn off all services (Gateway, DDNS, Wireless, etc) and then take your router and set it to PPPoE. You then get to enter the modem login info, and the ISP login info. Set it to be the gateway and make sure DNS and DHCP are running.

Modem = Bridged Mode (PPPoE)

It looks something like that...

Thanks for that. I will look into it. I know when I set the modem up I put all the details in via PPPoE but will give the service provider a call to double check it.

If the modem can be connected to the computer and get internet, then the bridge mode is not right. It should only work with a router being bridged with it.