Did you try it with the router set to 802.11g?

It's one of the tricks noted at link to follow. The fail to connect issue could point to router issues. Any make/model/firmware versions may reveal troubles. Example of such trouble and is not limited to my example I keep handy at -> http://www.tp-link.us/article/?faqid=510

-> http://forums.cnet.com/7723-7585_102-602528.html