Do any other devices use the router for an internet connection?

If so are they working? If not problem will probably be with the router or ISP or phone line. Can you make a call on your landline?

WEP key is a method of security to stop people jumping on your wireless connection. This is typically user set so who ever set up the connection should know what this is. Without this you will not be able to connect any devices to the router

PS3 wise i'm not by mine so can't guide you exactly however it sounds like your in the right place. Does it have a sort of tick list where it checks for connection, then IP then PNP etc if so the ps3 is doing everything to try and get a connection but can't. Not playstations fault.

As above firstly check to see if other devices can get a connection!