If it's not then make it "allow nonsecure password" See if this help or not.
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Abstract This article describes the tools used to troubleshoot a Microsoft Windows XP or Windows Server 2003-based wireless client, a wireless access point (AP), and the Internet Authentication Service (IAS) when using Institute of Electrical and Electronic Engineers (IEEE) 802.1X authentication for IEEE 802.11-based wireless connections.
For detailed information about the contents of the file, see A Support Guide for Wireless Diagnostics and Troubleshooting.Figure 1 shows the information available for a wireless connection in the Windows XP Network Connections folder.Figure 1: A wireless network connection in Network Connections In Windows XP Service Pack 2 (SP2) and Windows Server 2003 with Service Pack 1, the Repair capability has been enhanced for wireless connections.Additionally, when you obtain status on the connection, you can view the signal strength on the General tab and the IP address configuration on the Support tab.If the wireless adapter has an Automatic Private IP Addressing (APIPA) address (169.254.0.0/16) or the configured alternate IP address, then authentication has failed and the Windows-based wireless client is still associated with the wireless AP.