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It sounds a little stupid, but this happened to me. You're not using an adaptor for your DSL line and plugging it into the port for a phone cord, are you? My PS2 online unit came with such a conversion tool and I couldn't get it to work. It wasn't until I'd returned it and got a new one that I noticed I had to pull the yellow tab off the unit to plug in my broadband cable.
Failing that, it might be a good idea to get a router.
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"If you're walking on thin ice, you may as well go ahead and dance."
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