Linksys WAG54G V3 and iPod Touch (and iPhone)

Just bought Linksys WAG54G V3 wireless router.

Tried to connect my ipod to the wifi, it said 'unable to join network'
Tried it with my iphone 3g, the same thing happened.

router works fine with my laptop,
and im sure, i punch in the right password.

Is this model not compatible with ipod / iphone 3g?

thanks.