I've just sent this message to HTC. I recommend you all to complain to HTC about this issue. Clearly sending a faulty phone on the market is unacceptable, and we must unite and require an immediate fix/solution or action from HTC.
(Reply to thread above: Yes I'm a Fullrate customer and I can't reflash my router for the same reason.)
My letter to HTC customer support:
I'm writing to you about serious wifi problems with the HTC Hero and certain Wifi routers (just about the majority of all retail Wifi AP/routers out there...).
You really really _really_ need to address this issue soon.
Take a look here for example:
Numerous users complain about IDENTICAL wifi problems on the Hero through various access points. IP gets assigned, a good strong wifi signal is displayed on the phone and then nothing. No data gets through.
I've tried connecting with success through a cisco router/AP at work. No problems.
But D-Link, ZyXEL and Belkin fails (need I say how common these are in the retail and ISP market??!). I get an IP address, I can see the phone in the routers DHCP client table but zero traffic comes through to eg. the browser on the phone.
I'd expect you to test your new flag ship product against common wifi
access point hardware - and I'm therefore quite dissapointed to find this error to be of this magnitude.
Please advice as to how to fix this error on the phone, and if not possible at the moment, what your plans, timeline and immediate actions are for fixing it now.