Hi Michael, there is other firmware release 1.0.5.6, I suggest you to upgrade your device firmware and try again with your configuration, if the issue continues please just for testing matters you could try disabling the MAC firewall in order to verify if is able to connect, also try to other encryption method (WPA/WPA2) also short password.
Let me know if this procedure works for you, thank you.
I hope you find this answer useful
Greetings,
Luis Arias.
Cisco Network Support Engineer.