Hmm...
Router always had that base address (192.168.1.1), and when that address is entered into browser, router web-page is displayed, for setup.
The whole thing worked on my older machine (XP), but now I switched to W'7 pro and problem appeared when I tried to use the same link.
Instructions to setup HD via router are
here, I followed them before (it worked) and now (I hope...), and it doesn't work.
Will try as you suggested.