Picked up a a cheap $20 WiFi router from Frys which seems to resolve the iPhone WiFi connection problem. Funny part is iPhone fail to connect to higher grade hardware and prefer the low end stuff. I think the trick is to make sure the router is lock at 2.4Ghz range. Newer higher end router which support multi-band (2.4 and 5) all seems to have some kind of problems talking with iPhone 4.
As a FYI I am posting the router info.
- TRENDnet TEW-652BRp running firmware version 2.00.32
- 2.4Ghz 802.11b/g/n mixed mode
- Channel Width 20MHz.
- Enable SSID and WMM
- WPA-Auto / PSK and auto switch between TKIP and AES
- Non Hex Passpharse
- I have DHCP disable because I have a central DHCP server.
Hope this help.