I'm experiencing the same "Connected to network" going to "Scanning network..." repeat ad infinitium/nauseum/mortem - in my case a Siemens SX66 running the latest cooked ROMs from here:
http://sx66-blueangel.home.comcast.net/ (Win Mobile 2003)
Unfortunately every thread on this subject is clogged with people having other Wi-Fi connection problems on their pocket PCs.
However, this is one the the best threads out there on the subject. I tried the registry fix to no avail, but I do have a working theory - this seems to only effect WEP-encrypted access points. I run WPA-TKIP at home and it works great and I've connected to a few other access points around town (Austin is full of them), but I only have a problem at work.
The setup at work is:
A D-Link router running only as an access point
Windows XP Server as the DHCP server
WEP/40
Several other access points in the building
I will have an opportunity to test this because - oddly enough - I run a WAP-enabled access point at my church - but that won't be until this weekend.
I'll let you know what I find - but honestly there is little reason to run WEP these days - if your access point is that old - get a new one, WEP/40 isn't that secure and WEP/128 is SLOW.