Sunday night my IPad2 suddenly lost all WiFi connectivity while I was using it, and having spent 3 evenings trying to sort this out, reading multiple threads of which none helped, I want to share my solution. There are SO many suggestions on the web for what to do, all failed for me.
My Ipad went through three phases of malfunctioning:
1. WiFi completely greyed out - solved by a number of NW resets and restarts
2. The IPad can not find any networks. This despite being 50cm:s from the WiFi AP
3. The IPad finds the networks but can not log on to any of these, even if unsecure
All suggestions on DHCP lease renewal, switching security modes, switching g/n etc in the router was of no use. I used both a Linksys WRT54GL and an ASUS N66 router with various settings, installed new SSIDs etc. No difference at all while all other devices in my home (including a second IPad2) worked flawlessly all the time. So it was not a router problem. (Having to buy an Apple router sounds the wrong way to go if you ask me).
All the shallow IPad reset suggestions (like resetting NW settings from settings/general) had no effect at all in my case. This was close to driving me crazy and I was about to consider this a HW fault and take it back to Apple (it is only 6 months old), but I decided to go for one more try
So I went for a complete reinstall:
1. Backup contents to Itunes via the USB connection
2. Complete factory reinstallation - wipe it clean! - from within Itunes
3. When asked if you want to restore the Ipad using the backup config, answer NO. I tried this but the Ipad just went back to the old state with WiFi still not working
4. Instead go for a fresh install, no restoring from Itunes
5. Once up and running, disconnect from Itunes and rename the Ipad to the name it had when you did the backup in point 1 (not 100% sure this is needed but it worked for me)
6. Connect to Itunes again and copy the contents and settings back (obviously this is different from the restore option offered during the reinstallation #3 above)
Voila - WiFi back to life - all networks available, all can be accessed, good performance, connection seems stable.
No guarantee this method will help others, but at least you have one more option to try...