What exactly do you mean by "Wifi dongle manages to attach to my network.
(Wifi dongle actually attaches to my network and shows up in obitalk as needing set up)." ?
1. I was under the impression that the SSID and passphrase needed to connect to your Wi-Fi network are stored in the 202, not the OBiWIFI. If that is the case and if the 202 has been reset, how can it be connecting?
2. Please clarify what "shows up in OBitalk as needing to be set up"? The dongle or the 202.
If the dongle really is connecting to your WiFi, look in your router's GUI to see what IP address it has been given. Does that address respond to pings? Does putting that address in a browser return anything?