AVS Forum Special Member
Join Date: Mar 2007
Location: Long Beach, California
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That is a punch-down block, and may not be suitable for your Ethernet. I've used them in the past for the old 10mbps Ethernet, but I doubt it will work for gigabit, which is what you will want. It also looks like that setup was meant for phone service, as all of the brown pairs are not hooked up.
Are you sure it is Cat5e? If it was intended for phone use, then it could be Cat3. Also, Cat3 was used for 10mbps Ethernet, which only used two pairs. That might explain why the brown pair is unconnected.
In any case, you would need to replace that punch-down block with a suitable patch-panel, with all four pairs hooked up for gigabit Ethernet.
As for your DSL modem, it just needs to have access to power, the phone line and one Ethernet line. If it is also a router, it will have a built-in switch, and to have it there with the patch-panel may save you a small amount of money. But you may need more connections than the four that a router typically provides, so you would be shopping for a switch anyway.