Thanks Dr. for the suggestions.
I would have exchanged for a v4, but yesterday it started working.
TFTP doesn't work on the v5. (or least for me it didn't)
but there is a mode called Management Mode which allows to upgrade firmware.
The following info is from the linksys site.
1. Unplug the power cord from the back of the router.
2. Hold down the Reset button.
3. While holding down the Reset button, plug back in the power cord to the router.
4. Continue to hold the Reset button for five (5) seconds. After five (5) seconds, release the button.
5. Wait for about one (1) minute. Then, on a computer connected to the router, launch a web browser (for example, Internet Explorer or Mozilla Firefox).
6. Type in the router's IP address of
http://192.168.1.1 into the Address field and press the [Enter] key.
7. The Management Mode - Firmware Upgrade interface should appear.