I'm sorry I cannot completely solve your issues here, but this is due to certain details that are specific to your internet service provider, and other details not provided in your request. However, I do have quite a bit of experience with 2Wire gateways and setting them up for use with DSL service. The following is based on my experiences with 2wire gateways, and AT&T as service provider:
There are a many things that could possibly be causing the red power light (which indicates a system error, more details below), and the reason why you have no internet connection. Your very best bet is to call technical support for your internet service provider (or ISP) for DSL service. You likely received this unit from your service provider - if you did, then they will have technicians who can walk you through the setup process for this specific 2Wire gateway. Also, if you received the unit from your service provider, you most likely received a setup CD/DVD for setup on your pc. If you have not already run this setup disk, do so prior to contacting technical support, and check the status of your lights / internet connection again prior to calling tech support. Depending on your service provider, if you did not receive a CD/DVD from them to setup internet service, then you most likely can find a download of the setup utility available via their website...just go online and see if you can find it on their specific website,& if so, download and run the setup utility. Only run the setup utility on a pc connected directly (by ethernet cable) to the 2Wire gateway, unless directed to do otherwise by your service provider, or their setup utility's instructions.
If you did not receive the unit from your service provider, then you should contact them asap to find out: A) if they support the 2wire gateway (give them the model
number), and if they do support it, B) find out what is required to set
it up for use with their service.
According to the manual from the manufacturer, available
here , when your power light is lit solid red, it indicates the following: "system error, contact technical support". You need to contact technical support for your
Internet Service Provider (such as AT&T DSL),
NOT for the manufacturer.
If you have your PC connected to your 2wire unit, and the unit is powered on, you can access the unit's setup utility via your web browser (please ensure you have Internet Explorer 5.5 or later, or Mozilla Firefox 3.2 or later). Open your web browser, and in the address bar type the following:
http://gateway.2wire.net/
Click the system tab to open the System Summary page. The diamonds should be green or red, indicating the status of your LED's on the light panel of the 2Wire unit. It may give you only the status message I indicated above, or could provide you with more info. I maintain that you should first contact your ISP's tech support, but if you have not already accessed the gateway's setup utility and run the setup wizard, you may do so from the System Summary area. Look to the far right of the page, and you should see the Setup Wizard utility link in the lower right-hand portion of the page. Links for other registration info are also in this section, if available. Follow the on-screen instructions and check your status lights again.
Again, I hope this information helps, and again, your best resource is the tech support team for your internet service provider. Best of luck, and please report back to let us know if you get it set up, or, if we can be of further assistance to you in any way.