I've set up some of the older SMC's. And I had problems the other day when I reinstalled xp. What I found was a service that was conflicting (msconfig) from a built in card. You need to stick to 11g only. The b will kill your performace. Use MS ZeroConfig instead of any software that may have come the Slim Device. If it installed anykind montoring software that loads at startup kill it, all you need is the drivers.
When you do the wpa-tkip, start with a small 10 ch phase and then move up. I found on one of the older units if I exceded 20 chr it would not work, go figure. Another thing I found with some SMC products, after you make changes you may need to do a restart. I think its brain gets confused.
Thanks for the prompt response. The joys of wireless encryption, eh? I orignally had my wireless router set at ch 6. Everything else works fine except the Squeezebox v3, Slim Devices, and I even tried applying firmware version 35. Having no troubles using WPA2 on my laptop (broadcom wireless NIC.) I'll let you know if I find the ch number that works with the Squeezebox v3...if any of them will work.