when I do a scan, it picks up my network however it will not allow me to use it, something to do with security not being supported. I used WPA2-PSK...
Log into your router and go to the settings and find guest network setup. I have a Netgear N300 and I set it up for internet access only with no local network.
Without knowing what router you are using I cant say for sure if you have the same option available to you.
The issue is that your security is set to high on your router. I have the same issue with my sons Nintendo DS, I have to set out SRXN3205 to WEP only to get it to connect, and then once he is done I switch it back to WPA2-PKE.
I have a different NetGear Wireless Router, but I also could not get my PSP GO to access Internet until I set up a Guest Network without security but with only Internet access. This is done through the online router interface. Once those settings were in place, it worked like a charm.