Whoa - maybe you need to look at the ADSL section of the manual.
I run ADSL (requiring PPoE), but I have a hardware router in between. It has the PPoE config defined in there, so I only have to set it up once. It is also the DHCP server for the house, so DHCP (client) setup is trivilal.

Matir, you were (of course) correct. At one point, probably initial install, I needed to define the router address in /etc/conf.d/net as a gateway. Is (was) still there.
Just commented it out, and rebooted - all works fine.
Let me also say that networking is all black magic to me - hence my preference to be able to set it once (in the router), and forget it.

syg00... well, I'm going to college right now to eliminate that black magic effect for me. DHCP still makes my life easy with the 'doze users in my house.

finally, I found the solution. Now I use kernel 2.6.11-gentoo-r3 instead of 2.6.12. whenever I boot with kernel 2.6.12 it doesn't give me correct dhcp ip address. I tried more than 10 times. but kernel 2.6.11, which is default kernel in gentoo 2005.0 live CD, works really well.

I am not using Gentoo, but I am facing the same problem.

I recompile the kernel to ensure all the things are checked correctly. Still I cannot get my dhcpcd working.

Here is my log:
root@killa:/etc/dhcpc# dhcpcd -k
**** dhcpcd: not running
root@killa:/etc/dhcpc# dhcpcd -nd
dhcpcd: MAC address = 00:07:40:09:53:c3
dhcpcd: your IP address = 192.168.1.103
root@killa:/etc/dhcpc# dhcpcd -k
**** dhcpcd: not running

root@killa:/etc/dhcpc# ifconfig
eth0 Link encap:Ethernet HWaddr 00:07:40:09:53:C3
inet addr:192.168.1.103 Bcast:192.168.1.255 Mask:255.255.255.0
UP BROADCAST NOTRAILERS RUNNING MULTICAST MTU:1500 Metric:1
RX packets:10325 errors:0 dropped:0 overruns:0 frame:0
TX packets:6179 errors:0 dropped:0 overruns:0 carrier:0
collisions:0 txqueuelen:1000
RX bytes:8080921 (7.7 Mb) TX bytes:718829 (701.9 Kb)
Interrupt:18 Base address:0x2f00

<<< lo is not shown here >>>


Thanks!