<<< I have tried manually assigning an IP address into the router settings, however it still wont find it.>>>
Not sure I follow what you've done here - have you actually assigned an IP address manually to the Bluetooth Access Point?
If not, try connecting it directly to a PC's network port, give the PC's "Local Area Connection" an IP address in the subnet that the router uses, which will probably be 192.168.0.x so use 192.168.0.5 with Subnet mask 255.255.255.0 and then allocate another address in the same range to the Bluetooth Adapter. Use an address that won't conflict with any that the router allocates by DHCP, such as 192.168.0.55 with Subnet Mask 255.255.255.0
The router should then connect with the Bluetooth Adapter, although there may be nothing actually indicating this to be the case.