Just dawned on me that annex A and B are different hardware.

Mine is marked Annex A. Does that mean the hardware is not suitable for here?

Reading about annex A and B it seems that it relates to ADSL. A is over POTS and B is over ISDN.

Is this all relevant to VDSL? I am only using it with VDSL.

Meanwhile I have installed firmware 3.6.2.A.STD

Same result. Shows as connected but not actual Internet connection.

it should work even with annex B or A
did you add the username and password of your broadband account issued by the ISP?
also find out and check the correct vci, vpi,and needs the correct tag value from your isp (also make sure you have the right protocol, perhaps pppoe )
I know is related to an other country but should be something like this
http://www.draytek.co.uk/support/kb/kb_vigor_v2850_setup.html

Thank you - the link is very useful.

The think that sticks out from the example is the VLAN Tag insertion (VDSL) which I have not set. I will call Bezeq in the morning and see if anything special needs putting in there. I was just told the username and password which was enough with their router but could be other setting were pre-configured - it is a D-Link unit but has Bezeq branding.

Unfortunately I cannot find anything when logging into that router that gives this or any other significant settings.

ask them if is possible to give you the infos that the draytek needs
If will not set up this boxes the 2850 will not work
Perhaps same like here in England the VDSL BT openreach modem is locked so no stats or infos can be read
The values you see is perhaps some one have unlocked the modem and got out the stats, so now are public
So i guess the same for the d-link from your provider so try find out for the correct ones

I m also guessing (NOT sure of course) d-link uses infineon and i think the 2850 .... so if will make it work should synchronise good same as d-link...let me know...thanks and good luck tomorrow