Iphone 4 (4.2.1. - 4.3) Wifi connected, but not connected to the internet.

I bought my iPhone 2 weeks ago, never bothered trying to use my wifi. Now that I need it, it won't work.
I was on 4.2.1. 03.10.01, Wifi did not work so I upgraded it to 4.3 thinking it's a "version problem". Now Im on 4.3, nothing is repaired.
When I connect to my wifi connection, it says that I am connected, but whenever I try accessing the internet via Safari, The App store, youtube, weather, maps... it's says that no network was found.
My computer and my siblings ipod/computers/iphones wifi work properly.
Could I please get a solution, and if I go to the apple store will this be solved? I still have a warranty till May I believe.
Thank you

Believe it or not but your problem starts at the router level. When you think you are connected to your WiFi, tap Settings > WiFi > and the blue ">" next to your network name. Your device IP most likely starts with 169.x. This is an internal device IP generated by your iPhone that occurs when your router doesn't complete the DHCP assignment of IP addresses properly.
Try the following (anyone of which may fix the problem):
1. Reboot your router (unplug the power cord for 30 seconds)
2. Reset the network settings on your phone - tap Settings > General > Reset > Reset Network Settings
3. When the phone restarts, tap Settings > WiFi > Other and re-enter your network name, security, and network password.
If you continue to have problems, then it's time to stop using WEP encryption (if you are still using it) and check to see if router firmware updates for your router. If you have to use WEP, set it to 128 bit and use the WEP hex key in place of a password.

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