Am trying to connect to the internet on my ps3. I have a Linksys E1000 wireless router. I go through the step by step connection process and It keeps saying: "Obtain IP Address-Succeeded, Internet Connection-Failed" The Connection the the server timed out (80028E02)

check to make sure that the wireless router actually has an internet signal

That is connect.
You will need to connect the router to the modem with the Ethernet cable.

First connect the computer to the modem with the Ethernet cable. Make sure that you can access Internet without router.

Connect the computer to the Ethernet port 1 and modem to the Internet port on Linksys router.
Open the setup page of the router.
Change the Internet connection settings according to the Internet service provider.
Create a wireless network and then connect your computer and other devices to the wireless network.

Read more about How to setup Linksys router.

I think you can use second E1000 router as access point. So it will give you better signal strength.
Both the routers should be connected to each other.

See How to setup Linksys router as access point.

What is the problem with PS3?
Are you not able to access Internet on PS3?
read how to connect play station to the wireless network

Have you installed Cisco connect software while setting up Your E1000 router?
If you have installed the Cisco connect then you will find all the settings there. If not then you can open the setup page of the router and check the wireless settings. Read Linksys E1000 Cisco connect

Make sure the Modem is plugged into the correct port on the E1000 (far left port labelled 'internet' on a yellow background). Unplug all the devices power cables and restart them in order from the wall (modem - router - PC/MAC) make sure the modem has link and activity lights flashing, if there is a light for 'internet' wait for it to be on before plugging in the router. You might want to call your ISP and confirm theres nothing funky with the line/modem.

You should be able to connect to the Internet provided the PS3 wireless segttings is configured correctly.
For instructions on setting up the PS3, Xbox, or Wii, for awireless/Internet connection. please click on this link :-http://fixhomenetwork.com/xbox-play-station-wii.php

I'm unsure of the exact part number here but using the model number I checked the manual. This looks like it's just an access point which extends a current network you have. If you only have your laptop, this device and your internet modem it may not give you the wireless connectivity you're looking for. On a normal setup you would plug your modem into a router, plug your laptop into the router and set it up with all your DSL/Cable connection information as well as wireless on/off. You can then unplug from the router and continue life. with this one it's only connecting to an existing setup (another router or another wireless network) and extending it.
If you are looking for a solution to give you a router that connects to your modem and gives you wireless or adding multiple devices on a single connection I would recommend returning this and getting an all-in-one router such as this: http://homestore.cisco.com/en-us/Routers/Linksys-E1000-Wirelessn-router_stcVVproductId97826160VVcatId551966VVviewprod.htm?icid=linksys-specs-e1000-learnmore-btn&src2=linksys-specs-e1000-learnmore-btn

Hi,
Check the following steps to connect wireless linksys router :

First, you have to connect the router to the ADSL or the cable modem.

Your system has to be set in such a way that it will get its TCP/IP network settings from the router via DHCP.

Second, you need to configure the router to use your Internet service.

Connect the antennas to the Linksys wireless router. Connect an Ethernet cable to the Internet port at the back of the Linksys router and it will establish a connection between your modem and router.

Connect another Ethernet cable between the computer and the router. Then connect the router to an electrical outlet.

If you connect the computer to the router , it works.
That means the wired connection is OK.
Open the set up page of the router check the wireless settings of the router.
I think your network is secured and you are not typing the correct network key.
just open the router set up and check the wireless settings .
Make sure that the DHCP server on the router is enabled
Click Here for step by step solution