Airport Extreme Base Stations

We are currently having a problem getting Airport Extreme Base Stations to work with a Canopy Subscriber Module with NAT Enabled. Other base stations produced by Linkys, Dlink, Cisco, Microsoft, and Motorola all seem to work properly. Has anyone else experienced this issue?

In our network design, we have the SM handing out a private IP address 169.254.0.x to the clients computers or network devices. The airport seems to grab an IP address, as listed in its configuration window. However, no traffic seems to flow. I can’t even ping the Motorola SM.