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Having the same problem with my iPhone 4 w iOS 4.0.2. It works on other wi-fi networks, and over 3g, so it's clearly a router issue.

I've got a plain old Linksys WRT54GS router -- I'm not using dd-wrt or non-standard OS on it.

Anyone have insight to the problem? Specific router settings that might need adjusting? Any help is appreciated.

Maybe try upgrading/downgrading firmwares? If you're really desperate to get it to work, switch to one of the working dd-wrt firmwares.
 
I'm also on revision 14896. It seems to be a DD-WRT issue. As seen in this thread here:
http://www.dd-wrt.com/phpBB2/viewtopic.php?p=478040

Apparently downgrading to dd-wrt.v24-14826_NEWD-2_K2.6_big or earlier fixes the problem.

edit: confirmed fix. Downgraded to revision 14815 and it fixed the problem.

I having the same problem, running Firmware: DD-WRT v24-sp2 (08/07/10) std on my Buffalo WHR-HP-G54.
I resolved it by switching to Tomato Firmware: version 1.28, and all is fine now netflix streaming flawless via wifi.
 
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