Got a TouchPad today, and couldn't get it to connect to my wireless connection (BT Home Hub), it just said 'Association failed', and later 'no network of that name with that security setting was found'. I had to use my phone as a hotspot to get through the setup!
I fixed it by changing the router from using WPA & WPA2 to just WPA. To do this go to http://bthomehub.home and click wireless.
All working fine now, I just thought I'd post this here so to save anyone else with a home hub from the same frustration - Google turned up nothing when I was looking!