markbis: thanks for this, after tearing my hair out with Telecom NZ support I have put the Technicolour Modem into Bridge Mode as suggested, connected to my Cisco X3500 Router in Ethernet mode (Auto).
As an aside I has a rant about TNZ Tech Support on Twitter...and their reply...answer is probably on Geek Zone!! The 'Call someone who gives a s#!t' approach ;-)
They are there to support your Internet connection though, not to be your IT support....
Got my TG-589vn today, still awaiting my VDSL2 connection but was easy as anything to setup and bridge :)
Now can't wait for my VDSL2 changeover!