Is the modem connected to a known active ADSL circuit? I've never seen the message, but it sounds like it might need to be communicating with a DSLAM for changes to be made. When my modem was still config'd for 8/35, I got sync, but no traffic would pass. After the settings were changed, I was able to surf.
Unfortunately I can't afford to "down" my circuit to try it out myself.
