Vista - Internet local only!! Please help

Hi,
I got an o2 broadband standard package. The exchange is just across the road from my house. My BT master socket is in the Ground floor, I have another socket on the first floor. I set up the connection on friday night through the secondary BT socket which is on the first floor. It was working fine, I tried using the DSL wire(Yellow colour) and also tried wireless and It worked perfectly fine.

The next morning I tried to connect to the internet using wireless and It was not working, it said local only. I tried connecting the Wire and the internet worked with the wire.

I phoned o2 and they said I have to connect my router to the master socket, I did that and still NO internet. They said they will change some channels in my router and now Internet is not working with the wire aswell.

Phoned o2 several times, they said i have to open the BT socket and connect it to test line which I did and They saying now that My BT line might has got some problem and I need to phone BT to get it checked.

There are 2 small computer on the botton right corner next to the time. I clicked that and It show that Access: Local only.

I diagnosed so many times, reset the settings, reset the router still doesnt work.

Can some one please help. please try to use easy term, Im not good at computers.

Thanks.

Naveed