We have observed an issue when using a Belkin N300 router and an iPad (we assume the same issue will occur with an iPhone). When the iPad connects to the router network in the WiFi setting page, a warning screen appears indicating the router has a disconnected wire to the Internet.
Since the router isn't connected to the Internet, the message is correct - but is confusing to the user. If you are using this router, we suggest posting signs that this is expected. The user should tap "Cancel" to dismiss the warning screen and "Continue without the Internet" to allow the connection to remain active. Once that is done, things proceed normally.