IPhone 4 connected to work's wifi, but won't connect to Internet

Hi there
We have multiple iPhones and an iPad at work, and I'm having a **** of a problem betting them to use the work's wifi connection. We have a Netgear DG834G Wireless Router, which is a 108g spec wireless. The wired network uses static IP addresses (for all the macs and PCs we have here), but the wireless appears to use DHPC (as the devices are allotted an IP address beginning with 169) and WPK-PSK security. The settings on the server suggest that the DHCP addresses are supplied by the ISP. The MAC addresses of the iPhones and iPad have been added to the router's 'allowed' list. The iPhones and iPad work fine on other wireless networks, suggesting an issue with either static IP systems, or WPK-PSK security.
All the devices 'see' the wireless network, and appear to connect to it fine, but when I look at the displayed network icon, it is still using GPRS and not Wifi (we work out in the back of beyond, so no 3G).
Any ideas?

Hi Laurence
Thanks for your help. The info that the IP address starting 169 were self assigned led me to re-look at the setting on the router. The DCHP wasn't set up properly, an now everything works as it should. Thanks!

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