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WRT54G works fine with Wii, and is one of the most common routers out there.
At first, I couldn't connect to my wrt54g when I had encryption turned on. I turned off encryption, and the Wii connected. I let the Wii do it's updates, and once that was done, I turned encryption back on, and now it's fine.
Login to your router, default IP is 192.168.1.1
goto wireless, then wireless security.
if it has WEP or WPA selected, change it to Off (or disabled, I forget the excact wording).
Have the Wii search for a new connection again and it should connect. Check for updates until it says you are up to date, then turn the encryption back on.
You'll need to have the wii search for the router again, and enter the encryption key when asked (the key entered on the router).
WPA-TKIP(PSA) is the best combination of security and ease of use.
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