I had this same problem, my actiontec GT-701wg modem (Qwest ISP) worked fine using 64 bit WEP with 2 iBook G4's (airport extreme), an iBook G3 (regular airport card), and an HP PC with a PCMCIA wireless card. I tried many different things to get my new MBP C2D to connect wireless, but nothing worked. I always got the message "there was an error connecting to the wireless network". I thought the airport extreme in my new MacBook was faulty, but I took it to an Apple Store and it worked just fine there, connected immediately to an Airport base station using WEP.
I resorted to upgrading the firmware in the actiontec modem. Qwest has a internet site that posts 2 files for the firmware upgrade, the standard upgrade and a recovery firmware image. If you try this, I strongly recommend you download both files - because once you break the modem there is no way to reconnect to the internet and download the other file. Note: you must use a PC to perform the firmware upgrade (actiontec lives in the dark ages).
I tried the firmware upgrade first, and ended up with a modem that did not work. After "upgrade", the modem kept trying to boot up, but it never found what it was looking for, so it recycled to boot up in an endless loop. I then tried the firmware restore, and it worked! I ended up with a newer firmware version in my modem than I started with, and my MBP connected immediately. The only difference is that the new firmware uses 128 bit WEP instead of 64 bit. I had to go back and update the WEP key in all the other computers, but it now works with all computers, and has a much nicer user interface to program the wireless settings. I would recommend this fix to anyone who has this problem, but strongly recommend download of both firmware files before attempting the upgrade.
cube, iBook G3&G4,MBPc2d Mac OS X (10.4.8)