Modem - Router communication

[#1]

I had fibre installed yesterday.  It seems to be working (although not at the expected download speed) but I a having a lot of trouble when browsing.  Lots of places that I normally have no trouble with are coming up as "Unable to Connect".  If I try two or three times then I can often get through. 
I think this may be related to the way the modem and router are working. I have disabled the router's wireless connection and (after connecting obviously) turned off and unplugged all computers connected to the wired LAN.  However, the LAN1 light on the modem and the Ethernet, Broadband and Internet LEDs on the router are all continually flashing.  I have done hard resets on the modem and router, and tried another router, but the LEDS keep on flashing...
If I soft disconnect the internet in the router then the flashing stops.

The usage shown on the PN site keeps going up as well, even when nothing is connected.
Before I start looking for assistance, can someone confirm that the above is wrong - or should the modem/router lights be continually flashing when no traffic is passing.
Ian

[#2]

Hi Ian
No, the lights should only flash when there is data going through the router.  Have just checked mine to see. 
Like you I had my fibre installed yesterday and speed is not what I expected.  Thought maybe it was just my luck, but seems I am not alone.
Have you checked the Data Transferred details in the router?  Its under the blue internet link on the home page.  Mine only changes when I surf or download a file.  Haven't checked the PN useage to see if that changes without me doing anything.
Can you tell me which modem you had installed, wondering if there might be a pattern to problems.

[#3]

Thanks for the confirmation about the lights.
After a number of longish conversations with PN support (thanks Matt) my fibre problem has now been resolved.  The cause of the flashing LEDs was that my newly acquired static IP had previously been used by someone running a Sykpe, or some other telephony, node - but hadn't bothered to inform anybody that they were no longer using the IP.  The 0.5 to 0.75 GB of data I was receiving per hour was causing a bit of a bottleneck on my line!
I'm not seeing any resolving issues now, and my download speed is around 40Mb/sec.
Sorry I couldn't confirm your speed problem

[#4]

Thanks Ian.
Glad you have it sorted out