First this to do is switch everything off and remove the power leads. By everything I mean the VM modem, the router and the PC. Now connect your router to both the VM modem and the PC with ethernet cables. Don't attempt to do anything with the wireless settings until you have a proper wired connection. You can, if you wish, connect the laptop to the router now as well, again using an ethernet cable.

Now power up the VM modem. Wait until you have steady lights on POWER, SYNC and READY. Now power up the router. The ENET light on the VM modem should now be alight along with the light on the router. Now power up the PC and the laptop and see if you can now connect.

Once that bit is working you can setup the wireless network, making sure that you have all the relevant security.