I think you are talking about time capsule...
See here:
http://www.apple.com/uk/timecapsule/
I really cant see how a program can be plugged in

or are you using an external hdd with time machine?
Time capsule doesnt mention anywhere about being an adsl modem....could this be part of the problem. Also are you plugging it into your house master phone socket... Not an extension? Do you habe your adsl filters installed in every phone socket in the house?
Let me know more details. I can always come over for a butchers if you want a second set of eyes on it