I have the same problem. iMac 20" PPC using a FritzBox wifi router. Also I had trouble setting the AE up with either WEP and WPA. Wthout encription it works flawlessly but with encryption the light keeps flashing amber. I have it running now an a seperate wifi network away from the protected channel. This works fine but it isn't the way to do it ... Who has he solution? Gerry