Hi Jeahavee,
You might try setting up wpa_supplicant manually, see how here
WPA2 network connection failIf you do get a new router I like the linksys. I have a WRT150N running
DD-WRT firmware and it works great.
Might look at the Router Database list there before buying one so you can change it later even if you don't want to at first. Personally I threw the linksys disc away and flashed it to DD-WRT before I ever hooked it up. DD-WRT adds a lot of functionality to the router that the stock firmware didn't offer and I like the layout better.
There's also other firmware for routers like
Tomato and
open-wrt but I haven't tried those.