iPhone wifi problem - Incorrect Password


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I have searched far and wide for a solution to this (which many people are having trouble if you google it) but I still can't get the damn wifi to work and I hope someone can help me.

I have:

iPhone 3Gs

IOS 4.1 (Not jailbroken)

WPA security

Problem:

When connecting to my wifi, it prompts for a password, I type it in and immediatly gives me 'Incorrect Password'. However, my iPod touch which has version 3.1.3 works fine. As well as my laptop.

What I have tried:

Adding static IP address.

Reset Network Settings on iphone.

Changing router security from WPA to WEP.

Reseting router.

Adding a $ to the start of the password.

Choosing 'Other...' in wi-fi networks screen and typing my SSiD manually and selecting WPA.

Hitting it.

Hard Reset on the phone.

Converting my passphrase to HEX.

Still nothing works... Anyone else got any ideas?

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Have you made sure that the first character doesn't automatically change to uppercase? I know the username it makes the first case uppercase. I'd like to think the password doesn't go to uppercase for the first letter too :/

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The signal strength is 100% and i made sure it is not uppercase. (I even tried to uppercase it on purpose just to test) :p

I never had a problem before upgrading to 4.1

Are you sure that the password is the same?

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Yes. I created a brand new password when i reconfigured both my router and access point from scratch with WPA. (password does not work from my AP nor directly next to the router - both set up correctly with channel 6 and 11)

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Just to add another thing. I've tried to connect to my workplace wifi which has a proxy + certificicate authentication etc... And it excpets my username and password fine. It connects to it, and i can see the wifi icon on top of my screen. However when i try go to safari and browse something, or go to app store, it basically says that it can't connect. But my workmates have no issues. Its driving me mad now....

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All works now. Had to completly restore phone through itunes (without backup just in case there were remnants of any parasites within my settings and contacts etc...) So all working.

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