Wifi Sunray 800SE

Hi all. I've just got a Sun 800SE, with internal wifi. I've installed Openpli 4. It looks like it has r8712u driver, it sees the surrounding wifi networks. Trouble is I can't connect. I tried rebooting box and router, with DHCP enabled and disabled, tried with WAP and removing encryption altogether, but with no results.
Actually at times it connects for a couple of seconds, link strength and everything is fine, but after some seconds it disconnects again.
I'm at a loss here, any advice?

@ bneuro1 WPA password was properly chosen, as to your first question if as I understand it involves opening the box I'll do it if nothing works but was hoping not to have to already the first day. Also as u can read below after another try it created some sort of (though still not active) connection so that should indicate it's properly inserted shouldn't it?

@ bh0y I did reboot. I tried unencrypted this morning it was the same. After reading your post it gives me a different result, it connects this time, I can see it as well in the router interface in the client list (IP number seems to have been assigned ok), but for some reason there's no data transfer. When I try network test, it confirms it's connected, but the IP address and Nameserver are still in red color and say "unconfirmed". Really confused why that should be now.