problems with connecting to the internet with an Ipod touch 32 gig 2nd gen?

G'day all. went out and bought a Ipod touch and a new router for Christmas today and i got home configured the router so the wireless is up and running for my laptop, but the ipod wont connect properly. it says its connected and has full reception but everytime i go to load an internet page it comes up with "Safari cannot open the page because it is not connected to the internet." when i go to connect the WI FI i put in the secruity passwords and all that, but it doesnt seem to work. ive tried restarting ipod / router / modem and seeing if it will work but that didnt work. any surgestons would be very much appreaciated.
oh yeah i have a WRT100 linksys RangerPlus Wireless Router
mate seems to think its somthing to do with the router since i only just got it and i mite not of done somthing i have supost to so if you know whats wrong a step by step guide would be great