That's the correct form of the IP address.
Silly question, but are you connecting from your PC or from the router? i.e. have you set up the router to do the PPPoE connection or are you making the connection from Windows (through Windows' PPPoE or RASPPPoE or otherwise) ?
At the command prompt, type ipconfig /all
Are you using SP3? If so, quite a few people have experienced issues regarding DHCP not assigning DNS servers.
Check your DNS servers (should be 10.0.0.2 if that's your router's IP address).
If it is blank, try manually assigning it:
My Computer -> Right-click My Network Places -> Properties -> Right-click your Wireless connection -> Properties -> Highlight TCP/IP -> Properties -> Manually assign DNS as 10.0.0.2 (the Secondary server isn't really necessary).
Apply, OK, etc...
At command prompt, do ipconfig /all again to check that your DNS servers have reflected accordingly.
Attempt to browse.
If this sorts your problem out, then it's probably SP3 that's messing it all up. This seems to be a problem only with Telkom Mega 100WR and 105WR routers, so your choices are:
1) Get a new router: the Netgear and Linksys routers have great reviews from forumites, while I use an SMC and have had zero problems.
2) Roll back to SP2
3) Live with manually entering DNS servers