Connect to wireless (via Time Capsule) network hp Laserjet P1102w

I am unable to connect this printer to the wireless network. When hooking up my Macbook Air with the printer I am able to update firmware of the printer, and see that the printer is online. I enable the 802.11b/g/n but still when printing the test-report, it shows in Network Information: Status = Not connected

I have the latest firmware of the printer installed: 20130213

Downloaded the latest package from HP: 2012-10-17 , Version:8.0, 93.34M

I was able to install the printer with Bonjour package and use Airpint but only for a second. The connection gets lost and I am not able to restore it.

Please help out.

MacBook Air

OS 10.7.5