This means you device has found the wireless router but is unable to connect
--Things to try--
-Get right next to you router and try again
-Try using the “sync now” feature on the device a few times
-Plug device into PC and re-setup wireless sync in Zune software and try again
-Verify you PC is able to connect to the wireless network
-Reboot zune device (Hold back button and up) then try again
-Turn off/on the wireless in the settings menu then try again
-If MAC filtering is on for your router turn it off and try again
-Set your router is running in non mixed mode set to run in Mixed Mode and try again