WRT54G Wireless - Xbox 360

Converting/upgrading router to WRT54G wireless. All PCs working fine with upgrade, but Xbox 360 connects, then fails IP test.
If I remove security from the WRT54G, the Xbox connects completely and just fine, but when I reactivate security--either WEP or WPA security--Xbox no longer receives a valid IP address from DHCP, so I can't connect. 
I've entered and reentered the appropriate security password at the Xbox, so it's not simply a typo on the password. I've also reset-to-factory-default and powercycled until I'm practically blue in the face. I've also tried disabling DHCP and setting a fixed IP at the Xbox and disabling UPnP. I've also used the Windows Connect function to download wireless settings from a working PC, as Xbox explicitly recommends in its instructions.
Help?

Many thanks for the reply. Does it seem as odd to you as it does to me that one should have to go through all that for what Xbox calls a "compatible router"?
In any event, Xbox tech support has done nothing to distinguish themselves in my eyes. Amongst their bad advice: "the Xbox wireless network adapter is bad"; "you're too far away from the router"--both blown away when I successfully connected to Xbox Live via my neighbor's unsecured router located much further away than my router.
Anyway, I devised the following work-around: knowing that my Xbox 360 connected fine to Xbox Live with my router unsecured, I kept the security off and opted for MAC address wireless filtering, which lets only specified MAC addresses connect to the router. As soon as I entered the Xbox 360's MAC address and saved the settings, we could connect to Xbox Live without any hesitation. I of course had to track down all the MAC addresses for our other devices, but once that was done, everything seems to be fine.
Now, the trick is never to do anything that will change any device's MAC address...
Again, this is a work-around, not a solution to the problem of why the secured WRT54G was failing to recognize the Xbox 360 under either WEP or WPA-Personal.

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