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First, the upgrade may have replaced the default functionality. Second the wireless signal capacity allowabel for most computers requires letting the system aware of the new setup to share signals. The software is on the computer however requirign to adjust the wireless distribution to accept new codes to retain usual fucntionality.
The reason why your internet light is red for the actiontec gt701-wg is because it is not yet configure. You need to access the gui of this router. enter the username and password for your internet connection. You can contact your ISP provider so they can walk you through for the steps on how to configure your new router.
The old router has green light because it was already configured by your ISP provider.
I have seen this before and this has cured it:
Check the DNS settings in the Network panel and enter a manual DNS that matches the base address of the router (192.168.0.1 for this router).
System Preferences > Network > Ethernet > Advanced > DNS. Click the + sign and add 192.168.0.1. Click OK, and click Apply on the next screen.
You simply access the router's setup page by going to Internet Explorer and type http://18.104.22.168 it will prompt your for password, try admin by default. You can change the security key under the wireless tab and look for wireless security
You have options definitely. You can get it through verizon, they'll ship it to you free of charge. You can also buy it at any local store near you. If you're going with the second option, just make sure you're getting either an Actiontec or Westell brand, because those are the only modem that Verizon supports, even if you buy it outside. Since you're going to upgrade your modem, I suggest getting a Westell 7500 or an Actiontec GT704, both are wireless capable already. If you use XBOX 360, I suggest getting Westell 327 or Actiontec GT701 or GT704.
In looking on the internet the unit is a DSL gateway. Trying to use it on cable internet is not a real good way to set up your network because I believe the router is waiting for a DSL sync before the services turn on. I would spend the money and pick up a Linksys or Netgear G router, there around $50.