John asks:
How can I make my DSL Modem and NetGear Router be a stand-alone operation in one room and still be accessed by my PC in another room?
Currently:
1. Router has Ethernet cable connection (blue coded) to PC and a Ethernet connection (yellow coded) to Modem.
2. Modem also has cable connection to split telephone jack.
3. PC has USB 2.0 Adapter installed and Windows advises that it is working properly. Status is 'enabled' and 'device working properly' but forever trying to make a connection. But to give it a rest, I have disabled it for now.

The Answer:
I requested clarification, but it sounds like John has a computer with both wired and wireless Network Adaptors installed. It sounds like the router is a wireless router and that the USP adaptor he mentions is a Wireless LAN adaptor. If this is the case, all John has to do is re-enable the wireless adaptor and establish a connection to the router. This can be involved, especially if he enables the encryption (which I always recommend!) and is a little deep to try and explain here. I will post some related links but the first place to start is with the installation guides for the wireless equipment.

Once the wireless connection is properly configured, all John has to do is disconnect the blue coded cable from the router to the PC and move the PC to wherever he wants to set it up.

RELATED LINK: Setting up wireless network 1.

RELATED LINK: Setting up wireless network 2.

RELATED LINK: Securing Linksys BEFW11S4 wireless network.

Follow Up:
It turned out that my assumptions had been correct. The problem was that John didn't realize that the USB adaptor was managed by a utility from the manufacturer. He had been accessing the Windows Wireless Configuration utility and it was telling him that it couldn't configure the adaptor. Once he opened the manufacturer's utility, he was able to make the wireless connection. Once this was seen to be functional, he was able to access the router through the wired connection, set up the encryption, and reconfigure the wireless adaptor to use the encryption.

The notification that John was getting in the System Tray that the computer was disconnected is normal. When you disconnect the wired connection, you will normally be warned of this. To disable this notification, you can go into the Control Panel, Network Connections. Right click on the wired connection and disable it. Just remember to enable it again when you wish to use it.