Well, I got some more info, here seems to be the problem...
This apple doc seems to shed light on the problem.
The password being given to me by the airport admin utility was only 10 hexadecimal chars, (not the 26 that the bridge was requiring for 128b encryption), then I read that the 'original' graphite stations only support 40b encryption - thus the 10 digit key.
So I will try to change the encryption on the bridge to 40bit, and it should take the hex password now, and 40bit is probably ok - I don't think there's a lot of hard core hackers jumpin into my network, I just don't want my neighbors stealing bandwidth...
But the access point I have is actually orinoco not true apple hardware - and it advertises 128bit, but I imagine the airport admin software thinks its a original base station, and only generates a 40b hex key....we'll see
Lee