Sorry for the late reply - been busy with work
The DSL light flashing in the v120 (either fast or slow) indicates the modem has not synced to the line - see the user guide on the UK support site. It sounds as though the modem , cable or filter is faulty. Does the BT modem still work on the line? (just to make sure you don't have a line fault). Unfortunately until you get the modem to sync you will get no further.
For BT ADSL connections you need to use PPPoA and VPI=0 VCI=38, make sure the "PPoE passthrough for wired LAN" box is ticked.
Username and password details are entered in the WAN2 settings on the 2860 as my previous post.
