OK, here is the possible resolution.
I have my son's iPod touch connected to the orange livebox but it took some doing. First I set the pairing period to 1 hour, this can be done from the admin console on the livebox menu. It is not essential, but makes the whole thing a little less rushed.
Press 1 on the side of the live box.
Enter you WPA key into the

iPod Touch - important to note the following:
The Alpha characters ARE case sensitive and MUST be in upper case. Now I know this sounds strange, but I had exactly this issue on my macbook - trust me follow this to the letter - pun intended! Press the shift key BEFORE each alpha character and do NOT use the caps lock. It works - but it did take me 7 attempts of keying in the key before it took it.
Hope this helps
John