I have a verizon dsl modem and am trying to set up a wireless router but when I pugged in the ethernet cable, there is no internet connection. There is only internet with the USB cable.

Yes I have observed the same in my friends home too wherein we were able to use only USB and not the ethernet in this case you may either contact Verizon people or check with different ethernet cables or purchase an usb to ethernet converter so that you can add in your router

image of usb to ethernet converter

http://www.skycomp.com.au/images/product...