Here's a summary of my symptoms and what I've tried.
My current symptoms are:
Most of the time the wireless (Airport) status bars are greyed out and when you click on the icon, it says "no network selected" and it shows a neighbor's network, but not mine - However, in System Preferences the Network page says the status is Connected and shows my network name. Most of the time all applications that use the network, email, browser, etc. work just fine and I was also able to print to the iMac's printer through the wireless network from the Mac Mini. Also, I used Apple's Network Utility.app to ping Comcast's DNS server and it worked fine with the same times as my MacBook which doesn't exhibit any problems.
So, the Airport status says, "no network", but system preferences says "Connected" and the Airport card does seem to be working.
1. Problem occurs on white 20" Intel iMac ONLY. Mac Mini, MacBook and 2 iPhones work FINE.
2. The problem on the iMac ONLY occurs with OSX 10.5.5. The iMac works FINE in Boot Camp running Windows XP, and when booted from an external firewire drive running OSX 10.5.1
3. Turning Airport OFF and then ON shows proper operation of the Airport status icon for a short while.
4. I'm using WPA2 Personal Wireless Security. I had switched from WEP 128 with no change.
5. I'm using an Apple Airport Extreme wireless router, version 7.3.2 in 802.11n (802.11b/g compatible) mode.
6. I used iStumbler to verify that I'm not on top of a neighbor's channel. (I'm using channel 3).
7. I repaired permissions and deleted preference files as mentioned by Kevin Hiscox. This made no difference.
8. I added a different DNS server as recommended by someone. This made no difference.
9. I unplugged my wireless phone. This made no difference.
10. The PROBLEM is occurring on my internal HD with OSX 10.5.5, AirPort Extreme Update 2008-004 (shows up in logs). Wireless card Firmware Version: Broadcom BCM43xx 1.0 (5.10.38.9).
11. The problem does NOT occur when I boot from an external drive with OSX 10.5.1 and Wireless card Firmware Version: Broadcom BCM43xx (4.170.25.8)
As mentioned by eROCK1 here or on another thread, turning Airport OFF and back ON at least temporarily cures the problem. I also agree with eROCK1, now that I verified a different firmware version when the card is working properly (booted from an older version), that the problem is with the Airport card firmware. In any case, I'm quite sure it is a software problem that was created by Apple and should be fixed by Apple.
One thing that puzzles me is that there are people in the different threads that have had this problem since May. I'm 64 and my memory is not a good as it was, but I think I've only had this problem for a few weeks. Since I upgrade immediately whenever there is a new software upgrade, I certainly had the 10.5.3 and 10.5.4 software when everyone else did, yet I'm quite sure that I did not have this problem until recently. The only thing I do remember doing around the time I first noticed this problem was to create a new partition and activate Boot Camp with Windows XP SP3 in it.