No wifi connection when WEP key is active?

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AA-ron

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I have a Netgear WGR614 router and Im having a difficult time connecting my Droid 2 phone with wifi. I used to be able to connect without a problem but I cant get it to work anymore. I have verified my wifi works on my Droid 2 on another wifi network and can hit the internet.
When I connect to my wifi, it shows Im connected but cant hit the internet or anything. Im only a couple feet from my router so signal strength is not an issue.
I have also verified the wifi on my Netgear router does work. My laptop can connect and hit the internet without issue.

I have tried resetting the router via the small button on the back until the power light blinks. I left all the settings to default except to change the SSID name, router log in password and a 64-bit 10 character WEP key. My phone shows it is obtaining an IP address and connects with good strength, but still no internet.
If I remove the WEP key security, I can connect and hit the internet just fine.

So, why can my phone connect and hit the internet only when there is no WEP key security enabled, and then nothing when I secure my network? I used to have a WEP installed before now it will not work.

Someone mentioned I should make sure my router is compatible with wireless G but I can only assume it is since it used to work.
Any ideas?
 
I have seen this problem arise MANY times... Iphones and Blackberrys tho, not too sure about the droid phones... The way i resolved it was by changing the security to WEP and using a 10 digit integer as the key. So 1234567890 no letters. Give it a try
 
I have a follow up on the connection problem.
After playing around with the router's settings, Ive found that I can connect and hit the internet on my Droid 2 only when the router is using WPA2 encryption. If I set it to WEP encryption, I only get a local network, which is why it shows Im connected but no internet.

Only problem is, my laptop is the opposite. It will only hit the internet when the router is using a WEP encryption. When using WPA2 for my phone, I can connect to the network, but its listed as local network only.

Is there a way I can get both my laptop and Droid 2 connected and able to hit the internet?
 
Possibly bad router, should connect and browse for both. Give Axehack suggestion a shot and see what happens.
 
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