My home network wasn't broadcasting its SSID. This works fine for the Mac and PC laptops (5 in all). Has worked fine for years.
The Droid will let me type in the SSID (aka network name) and then says the network is out of range (or something similiar). I messed around with it to no avail and finally turned on the SSID broadcast at the router.
BINGO!
The Droid then saw it, asked for the password, and connected quickly. The WiFi then worked great. I turned off the SSID broadcast back at the router and the Droid immediately lost connection and again told me the network was out of range.
I solved it by leaving SSID broadcast ON. I hate doing that, but I suppose the Bad Guys who would want to break into my home network probably have the tools to sniff out the un-broadcast SSID anyway, so leaving it ON probably doesn't hurt. Much.
But I wish Google (or Motorola or Verizon) would push out a fix for this obvious bug.