Linksys Wireless Router :: WRT54G Listed As Secure But Would Never Connect

I recently had an issue with my laptop that required a complete reinstall of windows. As if this wasn't bad enough, I lost the password that I had for my router. Thinking it was no big deal I just went ahead and reset the router back to factory settings assuming I would be able to set up a network and encrypt it as I had before. Just testing the functionality, I was able to access my router while it was not encrypted and with the DSL modem plugged in, I also had internet access. I did this both wireless and with Ethernet cable.
 
Happy to see this, I decided it would be a good idea to re-encrypt my router to prevent any outside access. So as I had done before I went to the setting page where I set up a network with a web key. The only thing I entered at all was the paraphrase for the key then saved the setting to test it out. I refreshed the available wireless networks and mine was there and was now listed as secure. I then proceeded to click on the network, entered the key, and then waited for it to connect. The problem is, it never would connect. It continuously tries to connect, and says it is trying to "acquire the network address" but never does. Since then I have been on the hunt trying many different suggestions I have seen online, but none of the situations were quite like this one.