Your problem here is lack of an ip address. Either you have not set one manually or the router has not assigned one to you through DHCP leasing. If you try
it will probably attempt to obtain an IP lease but fail and end up with a "sleeping" message. In this instance I would be manually setting an IP address yourself manually. I would also be tempted to remove your encryption whilst you do this. Ie. get the link working before you worry about security. Once its working you can add your key again.
Depending on your LAN setup you may need to change your key to restricted - this may be your problem in the first place anyway.