I had the same problem when I first setup my iPhone on Friday. It looked like it was connected, but it actually wasn't showing a valid IP address. First, check the settings on your iPhone (Go to Settings/Wifi/then click the arrow for your network to see that you are getting a real IP address--192.168...etc...).
The problem with my setup was that the password on my router was a hexadecimal password. I didn't realize this because when I connect with my mac, I don't have to specify that it is hexadecimal. I clicked the Forget this Network button, and then rejoined the network, this time choosing WEP Hexadecimal as the option.
Let me know if this works for you guys.
Originally Posted by Riptide
I have exactly the same problem. Wi-F is connected and enabled, WEP password has been accepted but all browsing is taking place via Edge.
On occassion, I see the Wi-Fi Airport signal strength indicator on the the top left side, and its full strenght, but as soon as I begin to browse, the "E" appears and I am browsing on Edge.
I turned Airport mode on/off and also turning phone off.
It still doesn't work!!