Wow! I have been struggling with this same 3.1 WiFi no-workie crap for the last week. I stumbled onto this forum string after 2 days of google searches. As soon as I saw the double reset suggestion at the beginning, I began doing the same thing on my A500. I was getting discouraged as I went through the second and third resets as I continued to read the replies here.
But, on the 5th attempt (!), it finally worked. NOTE: I'm not sure if the 5th time was the charm, or the fact that I also on this attempt followed the secondary suggestion that "Lofeg" posted about only doing the paper clip reset while it was attempting to connect (as opposed to once it says "Disabled").
Thanks everyone! Hopefully it will continue to work.