AirPort Extreme Base Station error? Using Macbook Pro

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I am new to all of this and I thought I would be capable enough to set this all up but apparently I am not. HELP! I am trying to create and set up a wireless network using my Airport. I have an AT&T Westell Modem that is using dial up for internet. When I connect the modem directly to my computer I have internet access. The lights on the modem indicate that the ethernet and all other capabilities are working. I plugged in my Airport Extreme after using a cable to connect the modem to the Airport using the Ethernet port. The amber light is flashing and I followed the instructions to setting up my Airport using Airport Utility from the Applications folder. It detects my correct Airport but when I go to update and create my wireless network this error pops up:
Make sure your Apple wireless device is plugged in and in range of your computer or connected via Ethernet and try again. (-6737)
My computer is sitting right next to the modem and the Airport. I am not near any metal or any water, and there are no walls or other electronics to interfere. Am I missing something here? Restarting all devices has also proven unsuccessful...Thanks for anything that can help!
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Replay

If you just bought it I would recommend calling Apple, they can help you set it up.
Also you should consider getting a high speed Internet connection. They are very inexpensive these days and would make your Internet experience much more enjoyable. Where you live I would think you have a choice of DSL (available from most telephone companies) or Cable, which would be the quickest but also more money too.
Regards,
Roger

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