Just bought a belkin modem/router and i'm having trouble connecting the ps3 to the internet. When there's no security it connects fine but when i turn WPA2-PSK on and enter the correct key, it still doesn't work

Here's my current ps3 settings...
Internet Connection - enabled
Connection Method - wireless
Signal strength - 82%
SSID - ****
BSSID - ****
Channel - 6
Security - WPA2-PSK (AES)
WPA Key - *****
Address Settings - Auto
IP Address 169.***.***.30 (private networks only)
Subnet Mask - 255.255.0.0
Default router - auto
Primary DNS - auto
Secondary DNS - auto
Mac address - 00:1D:**:**:**:4B
MTU - auto
Proxy server - do not use
UPnP - enabled

Broadband is with telecom. Ipod touch connects wirelessly fine. Modem is Belkin F5D8636au4a.
Any help would be appreciated. Thanks