Primary DNS server is not responding

I am experiencing the problem described below.

I got an internet from provider (which is LAN cable sticking from the wall) - and it works fine when I connect via LAN cable - when I write the IP Address, Subnet Mask, Default Gateway, and DNS servers on the LAN adapter and create a PPPoE connection with username and password.
I want to do the same but wirelessly. I have an ASUS RT-N10 LX wi-fi router - and connected the cable from the provider to the WAN slot on the router. Then I have accessed the router from my laptop http://192.168.1.1 - and configured everything as it was on my laptop.

IP Adddress: 192.168.17.191
Submask: 255.255.252.0
Default Gateway: 192.168.16.1
DNS1: 192.168.1.250
DNS1: 192.168.1.10

Wireless network works fine, the default gateway is pinging - but DNS servers are not accessible. As a result no internet connection available (
Moreover - when I want to ping the DNS (ping 192.168.1.250) - I tries to get a response from other location 192.168.1.3 (but no response from there)

Any feedback / hints / comments will be greatly appreciated! I have spent 2 days for it but in vain (((

THanks in advance!
 
192.168.1.250 & 192.168.1.10 have been configured at one point in time to be the dns servers set in the router. Obviously they do not work now... I would recommend changing them to maybe an open dns ip: 208.67.222.222 & 208.67.220.220, or even google's dns of: 8.8.8.8

Hope this helps, take care!
 
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