Statically addressed devices cannot achive RUN state

[rm760]

I have just converted my home from (3) 3600 series autonomous APs to LWAPs with 802.11AC radios to take advantage of the 802.11AC radio spectrum.

I am using a WLC 2504 running version 8.1.102.0 software.   All is working great except for my security cameras.  They require a static IP address to communicate with the DVR.   They are older and use WEP encryption (hex 128 bit).   They cannot achieve the RUN state as the controller wants the IP address before allowing connection to the network.  DHCP is not set to required for the WLAN or Interface.  Here is the error I receive.

*apfMsConnTask_3: Jun 20 11:57:33.067: %APF-3-ASSOCREQ: apf_utils.c:1514 00:80:f0:58:14:b7 0.0.0.0 DHCP_REQD (7) Rejecting association attempt by ad-hoc client

I have even attempted to break down the communication to its most basic form (wide open), and still the same result. 

Thoughts and suggestions would be greatly appreciated. 

Attached is a copy of my configuration

[rm760]

I am still having an issue keeping the devices connected to the wireless network.  After about 15 minutes they drop off.  The only way to reconnect is to power cycle the devices. I do not believe it to be a coverage problem as the connections were consistent and without issue when the APs were in autonomous mode. The only new pieces entered into the scenario were the controller and converting the APs to LWAPs.