Maddog I don't have a wireless router but replying to this thread becuase you said "unable to connect to network" and "i do have a wireless address coming up on my phone."
I had to create a Wifi spot in my house cos i only had a wired router, so I used a Dongle. Took me 2 days to sort the damn ICS but those 2 statements you made were the same as what I had when my ipod touch did not have the correct Router and DNS specified. In other words, for some reason the IP address and Subnet mask were crazy, just like External stuff .... 162.28.144.32 and 255.255.0.0 ..... Stuff that should not have appeared if the Ipod was on a Network. There was also NOTHING in the gateway and router section.
When I got the ICS sorted the IP and subnet was as it should be ...
192 168.x.x and 255.255.255.x and the DNS and Router 192.168.0.1.
Check your router settings .. sounds like your Iphone is being assigned an external IP address rather than an internal one (192.168.x.x) hence confusing everything else !
Sorry I cant be of more help but thats as close as an experience I can relate to. Hope it helps.
Jax
GL