Basically when you it prompts you for the password, you obviously add the correct PW then when you tap JOIN, it connects you to that individual wifi network.
Which will give you the ability to access to the intenet (as long as it's got a valid internet connection)
Tapping join will not do anything to your phone. If it worries you, turn it off in settings.
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32gb iPhone 3GS 3.1.2 JB via Blackra1n
8gb iPhone 3G 3.1.2 JB
-John
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