After some work trying out different settings I have finally solved this.
1) Make sure that the settings of your Airport Extreme are in mixed a/b/n mode
2) Open Airport Utility
3) Select Upload Firmware from the BaseStation menu
4) If you current version is 7.5.2, click Upload Firmware
5) Select 7.5.1 from the pop up menu
6) Restore Firmware
After this is complete, you should be able to use your iPhone with the Airport Extreme. The latest firmware is buggy and does not allow iPhones with the latest iOS to connect.
If this solves it for you, please click solved (or correct answer) in the apple discussion boards.
Thanks
Brendon