There are different types of security used by wireless networks. The Kobo eReader supports WEP, WPA, and WPA2 Personal. Folks are successfully using all of them with a whole bunch of different routers. Routers can be finicky little buggers, but my assumption would be that once you have tried a reset of the Kobo, other problems you are having reside with the router setup.
If you can connect your Kobo to any other secured WiFi network (for example a friend's secure network) then you will know for sure. IMHO, Kobo's responsibility is to assure that you have a device that will connect to a properly configured router--not to provide tech support regarding how you set up your particular router.
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