Solution!
Ok, I've been on the phone with APPLE 4 times, and got it to work, but then my computers didn't want to get online...
This happened with getting the Nintendo Wii working too...
_--------------- SOLUTION -------------------_
1) Push and hold for 15 seconds, the red RESET button in the back of the ActionTec router
2) After it has been reset, it will now use the WEBKEY and ESSID on the white stickers on your router (on bottom of router)
3) You will have to use these to reset your computer and iPhone settings.
4) Restart your computers, and re-enter new info from ActionTec Router bottom stickers
5) iPhone - Home - Settings - Wi-Fi - See your ActionTec Router now (using the ESSID from sticker) Choose Router
6) Choose blue circle arrow button
7) Choose PASSWORD
8) Choose HEX or ASCII
9) Enter in your WEB password from bottom of ActionTec Router
10) Click JOIN
11) This should now work.... Be sure that the network is full and you see first the mobile strength, AT&T, and then the WiFi signal strength...
Now, it works for my computers, Wii, DS, iPhone, Laptop....