Just a thought:
The Axim connects using the slower B speeds of WiFi. It might be that the WiFi router is offering the higher G speeds only?
See trouble shooting guides here: http://wifi.aximsite.com/wm5.html
Have you rebooted the router? as well as the Axim??
Have you met 2 problems? One where it stopped working. Now, after doing a hard reset you might have cleared that original problem, but it will have forgotten all access codes and passwords and security levels etc.