My setup was pretty close to that. I adjusted it where necessary. I can connect with a laptop, but iPhones are giving me fits.
It looks as though they connect, but there is no internet connection to the phones. I've tried with 3 different phone versions, 3, 4 and 4S.
I reset the network connections on the 4S, but it didn't help.
I would suggest using the packet capture diagnostics under system -> diagnostics -> packet capture to see exactly what traffic the iphones are having issues with.
load the data into wireshark if needed for analysis
hope this helps.