T_Nut: The graphical connection app is sort of flakey. Your best bet is to use the wifi script found in /usr/local/bin. Just edit the file and add your wep key, ssid etc. Then just run that script to connect.
pcuguru: That is correct. There is nothing mucked up. It's an issue with the nand's jffs file system/formatting. It doesn't allow users, swap etc. It's the same with most any other embedded linux where only root is the main user. Not exactly sure why that is though. You can add a user and give them the same permissions as root (like i did in 3MX) and all will be fine, however in theory you are still root, just with a different name. I haven't used etch in awhile, but i think i created the user "user" with full root priveledges for you already. Look in /etc/passwd and change your new user to look like "user" and reboot. That's about the only workaround, unless you install and boot from an SD card. Then those issues doesn't exist.
Cheers.