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Yes.  Think of the DSL modem as a combo NAT/Modem device.  Most have
this capability, it's just not a widely known thing.  BellSouth, by
default, ships theirs with this feature disabled and pppoe pass-through
enabled.  This makes it very easy to setup a single client PC which has
an empty ethernet interface (or someone that desires to install USB
network drivers).  But home owners that use a home network to connect to
a network printer, file storage, or other ethernet device, will want to
disable the pppoe pass-through and have the DSL Modem use NAT to
participate on the local network.  In this mode the pppoe credentials
are setup in the network interface on the modem (<a  rel="nofollow" href="http://192.168.0.254";>http://192.168.0.254</a> or
similar) rather than in software installed on the local PC.

-Jim P.




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