[olpc-help] Wireless Access Point - Help!

[bluerover94-olpc at yahoo.com]

Ok - I'm at my wits end.
 
I have gone through every possible setting on my home
wireless access point and the two G1G1 XO's we got the
kids for Christmas.
 
The only way I can connect the XO's to the internet is
if I completely disable encryption on the access point
[not so good for the XP laptop and Macbook in the
house].
 
Here's what I know:
 
XO build 650
Tried WEP open & WEP shared [password, hex, and ascii]
ISP is ATT Uverse
WAP is a 2Wire 3800HGV-B Gateway Software: 
5.29.105.76
 
As I said I disabled everything, exposed the SSID, and
I can connect with the XO and surf the web.
 
Afterward built security back up. MAC address
filtering with no encryption is OK, but as soon as I
turn encryption on the XO will not work on the WAP.
 
I have tried every possible drop down [adjusting the
WAP to match e.g. Hex on the WAP/ Hex on the XO; ASCII
on the WAP/ASCII on the XO] combo I could. I have
added the "s:", "$:", and even "0x" prefixes. No luck.
 
Any advice is appreciated.
 
Dennis