I still think there is something funny that happens. I've had similar what I think is a similar situation. (
http://www.aximsite.com/boards/showthread.php?t=137818)
Wifi seems to be on but nothing happens. Toggling in and out of flight mode seems to make it work. It all started for me with a BT connection.
Also, when I first got mt axim, Wifi and BT would be off, and flight mode would also be off. Now it seems all willy nilly. (excuse the technical terms)