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Strange. I've never experienced any difficulty with my KA1 connecting to a network via wifi.
However, I'm not running the latest firmware and haven't used the wifi in some time because I don't want to mistakenly update my firmware. I have various dictionaries and Koreader installed under a former firmware and everything is working well for me so I feel no pressing need to update which would likely necessitate reinstalling stuff and tweaking settings.
If you're not happy with your experience using the Kobo firmware, you may want to try installing Koreader. The PDF experience is much more pleasurable and you can install a wide variety of dictionaries which can be very handy if you do much reading in a second or third language. You can also take screenshots etc. i mainly just use the Kobo firmware for reading in Japanese as Koreader doesn't seem to work well with vertically oriented text and furigana.
Best of luck.
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