I can get connected the routers but when I try to launch PIE or anything other internet application it automatically wants to connect to cingular internet and I click on cancel but nothing.

Any ideas?

If the phone tries to connect to GPRS, then you are not fully connected to the internet via wifi. Does the comm manager state you are connected and you are past any security? I know when I connect at some free hot spots, I have to wait a long time to log in, then I have to launch PIE to agree to the provider terms, before I can get online. I have to do this a Noah's Bagels, and public libraries. THe phone will say its connecting, but not connected. I dont know why it takes so long, where as at home, with my b/g router, after the initial log in (first time) it is a snap. and takes less than one minute.

Did you do the 802.11g reg edit? Maybe that is what is causing issues, I know I can connect to way more hot spots using g versus b.