[Hampshire] Netgear router problems with NSLU2

I finally succumbed and invested in one of these babies. I first of all want
to use it in it's vanilla form, and later flash it with the Debian distro
that is available for it. BUT, I have been spending all of today trying to
set it up. It "should" be a doddle, but I am finding it not so easy.
Actually I have failed miserably! So here's a plea for help!

I have connected the NSLU2 to a brand new external HDD (which does work fine
btw), and then to the Netgear DG834G (v2). Powered it up and all the
relevant lights have come on. However, the setup utility on the CD couldn't
find the device. When I check the attached devices on the router, it isn't
listed. Yet the "ethernet" light on the NSLU2, and the relevant connection
light on the router are both lit and flashing intermittently.

I've checked all the settings on the router and can't spot anything amiss.
Also, it has recently been flashed to the latest available firmware.

So, before I conclude that the NSLU2 is a dud, can anyone suggest anything
else to look at?