I've been at wit's end for the last couple days trying to figure this out, both independently and with the help of a tech-savvy friend. Neither of us had any luck, and for something I've seen discussed in more than one place as a solvable problem, it's been driving me up the wall. Here's the scenario:
I have a Linksys WRT54G2 wireless router in one room, and a couple of consoles -- an Xbox 360 Elite and a 20GB, non-wireless PS3 -- in another room. I used to have the consoles hooked up directly to the router with ethernet cables, but since I moved and resituated my computer and entertainment center in distant rooms from each other that's no longer an option. After researching the best solution to get both consoles on my wireless network, I picked up a Zyxel WAP3205, which I set up in client mode and supposedly got to communicate properly with my wireless network. But no matter how I try or what I do, I can't get the consoles to connect to the network -- the best I've managed is to get each of them to recognize and "connect" to Live/PSN respectively, only to lock up/time out when tasked with actually running something bandwidth-using like Netflix or the Playstation Store.
I'm not sure what's causing this grief -- my local area connection's got an automatic IP, while the router itself has been given a static IP for port forwarding purposes. That could be part of it, but I'm not sure. I've tried configuring both consoles with both static and automatic IP configurations as well, but no dice either way.
That didn't help. The 360 connected to Live right away, where it had frequently failed to do so in client mode, but I still wasn't able to download a demo or stream Netflix (the latter got hung up on the "determining video quality" screen). And after I rebooted the console, it wound up unable to sign into Live again. Once I reset the network connection settings back to default and tested the connection, it was able to connect to the network and the internet but was unable to actually communicate with Live.
The PS3 didn't sign in to PSN, and configuring the network settings to do everything automatically resulted in it not being able to produce an IP. Restoring default settings didn't help either.