Hello Greg
I have seen problem with iphone 4 seeing home wifi, but unable to connect. Odd thing is that it connects fine to a Sagem router at one end of the house, but unable to connect to a DLink DAP 1160 which is used to extend wifi to the other end of the house via a cat 5 cable. The iphone will connect to a neighbours BT homehub system when tested using her passwork key, and seems to connect to any other system worldwide ie in pubs, restaurants etc.
Every other device (all non apple) connect to either access point in my house. I have tried changing encription settings/beacon frequencies/done numerous resets on the phone and router to no avail. Updating iphone today with the latest software version has made no improvement.
I am totally stumped, I am summing up the courage to get the brush off either from apple or dlink helplines.
BTW this problem appears to be documented on other web sites, again there are lots of ideas, but no definitive solutions.
Francis