I have a small network (50-65 computers) which are all connected via a LAN. I have a DHCP server and a gateway (Firewall). Recently there was a requirement to connect all the smart phones used in the company (Blackberry, Iphone and Android phones) to the internet when in the facility through our network. Hence I purchased a access point router and a wireless router. I configured it as below

1. Gave it a static IP
2. Made it a DHCP forwarder , so that it gets the IP to be assigned from the DHCP server.
3. Created a SSID and gave it a WEP security.

Laptops, Smart phones were able to connect these routers effortlessly. Suddenly the smart phones stopped working on these routers.

What happens when I add a new smart phone to the network,

1. It connects to the wireless effortlessly, I am able to ping the smart phone from a PC but cannot browse the internet.
2. I am able to put a laptop on this same wireless, its able to browse the internet and able to ping the smart phone.

I cannot figure out what is causing this partial functionality. Anybody with any idea, please help!!

Thank you