Update: Unplugged unit overnight as was suggested earlier. No help.
Moved SB to two feet away from the router, just in case it was too far before. No help.
Bryan, Thank you. Your instructions were great. I followed them (wired desktop) and determined I have been using the correct encryption key including letter case (all lower case).
Tweaker, Thank you for the info. I checked and the settings are on WPA Personal and TKIP.
So, no problems. Everything is set correctly. Oh, there is one small problem. The Squeezebox still won't connect. Error message is "Encryption failure.......go back and try again". One definition of insanity is doing the same thing over and over while expecting different results. I am not that far gone----yet.
Any other suggestions? Remember, baby steps, English and I need to keep my laptop connection as well. You can take this private if you wish.