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Thought this info might be useful for some people out there:-

Below is based on what I have read on various sites and my experience with Kindle 4 Wi-Fi firmware versions 4.0 and 4.0.1

Your Kindle 4 Wi-Fi WILL NOT connect to a wireless signal if it:-
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has security set to WPA-Enterprise or WPA2-Enterprise (Radius server)
is an Ad-hoc or peer to peer wi-fi connection.
has data encryption set to AES only. I believe Kindle 4 WiFi does not have the physical hardware required to do AES encryption.
is set to 802.11n only.

Your Kindle 4 Wi-Fi MIGHT NOT connect to a wireless signal if it:-
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has data encryption set to TKIP+AES. Even though TKIP is available it might not connect (I had this issue on NetComm NB6PLus4Wn ADSL Wireless Modem Router)
is set to broadcast on channel 12, 13 or 14. USA only uses channels 1-11, but many other countries allow channels 12, 13, 14. (I haven't tested this).
is set to auto, region selected allows 12, 13 or 14 and it auto switches to one of those channels. (I haven't tested this).
has a password more than 18 characters (I haven't tested thsi)
has a password containing special characters such as [email protected]#$%^&*()|?>< (I haven't tested this).

Your Kindle 4 Wi-Fi CAN connect to a wireless signal if you do all the following:-
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set to broadcast only on channels 1 to 11
set to broadcast as 802.11g only or 802.11b/g/n mixed
use unsecured, WPA-PSK (TKIP only), WPA-PSK & WPA2-PSK mixed (TKIP only), WPA2-PSK (TKIP only) or WEP encryption
have password less than 18 characters with no special characters
have mac filtering disabled (the default on most routers) or add the mac address to allowed list

Note: Changing your wireless to be compatible with the Kindle 4 Wi-Fi usually means that other devices can no longer connect using full 802.11n and therefore those devices lose the better range/speed of wireless draft N.

Conclusion:-
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1. If you only want your Kindle 4 Wi-Fi to connect to internet at home and if you are happy to change your wireless settings to be compatible then you shouldn't have any wi-fi issues.
2. If you want your Kindle 4 Wi-Fi to connect to other wireless networks the issue is that you cannot control what settings other networks have and therefore you can expect to have connection issues with other networks.
If the above is all too technical for you and you just want an eReader that connects to wi-fi without any hassles then I recommend the Kobo III Touch, which is a similar price.

Last Words
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Sorry I didn't fully test all the issues outlined above, but couldn't test any more once I returned the device to Dick Smith Electronics for a refund.
 

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Thank you! That is very comprehensive. Having gone backwards and forwards for two weeks with Kindle support, this explains why the Kindle 4 will not work. I don't want to lower the security at home, so it looks like this device is going back to the shop!
 

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TSF - Emeritus
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Hello Liam - A warm welcome TSF :wave:
That is a nice posting, Thanks. I am making it a sticky.
 

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Another data point. Kindle 5, wifi.
Success:
802.11 g/n mixed, WPA-PSK2, AES only (TKIP kicked other devices into slower connection, so didn't want to use).
Password: > 24 characters. Octothorp (#) works OK. Other characters failed (not sure which, didn't do full tests).
:dance:
 
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