Solved my WiFI issue! Someone on XDA linked me to this: http://code.google.com/p/cyanogenmod4milestone/issues/detail?id=269#c2
Going deep into the WiFi settings I found the channel selection option. There was no option selected, so I chose 14 channels and low and behold works WiFi is channel 13
Yeah, easy to sort once I found that. I guess 2.2 scans 14 by default and for some reason 2.3 doesn't. Even if set to the correct region. Oh well mystery solved!
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