The WEP issue has been fixed. As per batch configuration, stayed tuned for fix soon.

It can be static or DHCP. It will failover, so look at how you have it setup in CallManager.

SpectraLink does support 40 128 WEP. No problems, you configure on phone via menu. Phones are now 11 mbps, so no special AP configuration needs.

You need to also setup option 66.

Please take a look at SpectraLink NetLink IP Wireless IP phones. We have references sites that use the 340/350 APs. Please email me with any questions.