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Some questions:

This is your home network yes?

What kind of connection do you have (I presume broadband, so you have a modem and a wireless router yes?)

Did you have your old DS connected to it working fine? If so then have you changed the settings on your wireless acces point (ie your router) to use WPA instead of WEP.
The old DS can't use any encryption but WEP apparently, which means that before you got the DSi you were using WEP. If your router is still WEP then it shouldn't work with the DSi using WPA. I am not sure how you could still get on the DSi shop though, I am not sure of how the DSi works.