Those steps have been outdated since the 2.0 firmware came out and enterprise encryption started being supported. Here's how to connect to the faster PAL2.0:
1)Goto Settings--> Wi-Fi--> Other...
2)For name enter "PAL2.0" (no spaces)
3)For security select "WPA Enterprise"
4)Enter your career account username and password
5)Click accept when it pops up
Also, you need to be in range of the network, ie on campus, to set it up. Also, since the ssid is not broadcast in most areas, you may have to go into settings and select it manually when you want to connect, but you don't have to enter your login info every time.
http://dcstoday.itap.purdue.edu/iphone/Manual_Setup.html
Has anyone figured this out for the new update of the ipod touch???? I cannot figure it out at all and I'm getting frustrated.