First. Your Router will connect to the Internet, so you do not require a server.
Second. I see no reason that it shouldn't work with Pipex.
Third. click here for a thread related to the DG834GT. This is the double speed version of what you are considering and clearly has some problems. However, your version may not be suffering the same fate! It may be worth a web search though, just to confirm it's not riddled with potential problems.
If there are problems, you may wish to consider one of the Belkin range, which seem really hassle free for home use.