Share your experience!
No worries, thanks for the heads up 
I get this same problem on my Xperia Ray, it says scanning then disconnected, scanning then disconnected. I am trying to connect it to a connectify network (that it has connected to in the past, but not since updating to 2.3.4). I can still connect to other open networks, and an eduroam network (PEAP and MASCHP password situation... or something). I can connect to my network sometimes, but it always his limited connectivity. Using a static IP means I can connect to it fully, but no internet actualy works on the phone, it all just loads as if it has internet and carries on loading until I exit. Connectify uses a WPA2-PSK password, and cannot be used without one, but without connectify I would have no wireless access on my phone.
Please note this is only since I updated to 2.3.4, I managed to connect to the connectify network fine before, and can still connect to other networks (have only tried open and eduroam so far).
Any ideas? 😃
I had exactly the same problem on my Lynksys router. I updated the router software to the latest version and the problem went away