Ok I figured it out
If you keep getting "incorrect password" using your Iphone when trying to connect to a Linksys (WRT54G) Router.
Try typing in the WEP "key 1" numbers (not the actual password or passphrase)
They are located in the "wireless security" settings.
1. Go to 192.168.1.1
2. Enter "admin" for both username and password (actual one NOT "key 1" numbers)
3. Go to Wireless/Wireless Security and they should be right there.
4. If Default Transmit Key "1" is marked use "key 1" numbers, if "2" is marked use "key 2" numbers, etc.