Try switching the router to only use B mode, and see if it connects like that. I had a similar issue when I was using the stock Linksys firmware on my WRT54GL, but once I'd flashed it to use dd-wrt my Wii happily connected to the router when it was configured for G mode. As I wasn't going to stick with the Linksys firmware anyway I didn't bother looking into why it did that.
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