This is a question ive been tryin to solve for the past 5hrs and unintentionally ended with hostel server choked for 5 hrs...

my hostel has a dedicated lan , with a direct link from reliance broadband but it doent have a wireless campus.
And i had a WA1003A wireless router provided by bsnl broadband sum years back.

So wat i tried to do was to make the room around me wi-fi...
i connected the routers lan port to the Lan socket in my room with a switch.
and changed the router setting to static <in place of "ppoe"> with its IP set to the ip given to me in my room, so now the router is acting as my computer for the reliance server...plus its DHCP client started to give IPs to the laptops around < via wifi>....

LAN was working fine and all the computers of the hostel were connected to all the laptops around me....<we use borgchat application for messaging among us>....

NOW the problem starts.....

The laptops were unable to reach the internet ....soon all the computers in the hostel were unable to reach the internet....i was still tryin to figure out wats stopping the laptops to connect to the internet <unaware of the situation of other rooms> ...

soon i recieved a call from the reliance person explaining me that my small router has taken over the server in the hostel and its providing ips to all the systems on the network...and the conflict between my router and the server has choked the server <too much upload ...>

since i dont have internet at my place so the hostel was unable to get internet service from me....

NOW sumone please tell me what did i do wrong and wats the proper way to do it <wireless establishment + LAN between computers and laptops>
...

till then i'll try explaining the authorities who still think im trying to hack into the server.