Rick,
Go to a command line (start menu / run....type 'command'), and type 'ipconfig /release all'
That will release your IP. The connect the modem to the router (WAN side), the PCs to the router (LAN side) and you should be set.
I am with Rogers here in Canada (AT&T for the most part) and they too would rather sell you an additional IP then have you network your computers together. What you are doing, and what many others also do, is not illegal at all. You are simply setting up a home network.
Edblor