I know that I can do that, but I can't get into the router through telnet or through internet explorer using the old ip address of the router. There must be something else wrong. I should have been more specific.
If you connect to your console port you will find the router is probably booting in ROM Monitor (rommon) mode. This is a very basic IOS that's burn on to a chip for just such occasions.
Here's a link to a document at CISCO that describes the ROMMON operation for the 806.
It looks like the 806 will let you enter an IP config and then use tftp to upload a new IOS image. You can get the new image from CISCO.
If the tftp doesn't work for you, you can also use Hyper Terminal or similar program's XModem protocol to upload the new image over the console port. I've done this before. It's slow, but it works!
Of coure you can't telnet to your router and use you configured ip addresses. All this information was written in your config file and it was stored in NVRAM. What you have to do is to connect to your router through console (use rollover cable) and configure your router again, using setup for very basic connectivity or using manual configuration. And I don't think your router is booting in ROM monitor mode because you erased NVRAM. It just boots up with full IOS version, but can't find valid config file.
just a bit more of advice, when you finish configuring your router, save a back up config to a tftp server. copy run tftp or copy start tftp will get this done for you. you can get one from the cisco web site, it is really easy to do.
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