S.Prime, matt thanks for the suggestions but please remember the problem we are having is in the initial set up so we cannot even get to Settings to try any of the suggestions that involve 'go to settings'. Until the initial set up is complete we cannot do ANYTHING on the Nexus.

BT is indeed British Telecom - the main UK Broadband provider.

Anyways toulky, my Nexus is now up and running and all is well.
The solution?
Well it's very embarrassing really, I was using the wrong WiFi WPA Key (password).   

How did I find out?
I went to the Settings on the Home Hub and checked out what the key was set to.
As S.Prime says it's also on the label on the bottom of the Home Hub - as long as you haven't changed it from the default.

I then remembered I went from WEP to WPA when I upgraded from Home Hub version 1 to version 3.  I obviously didn't change the key in my password database - d'oh!   

Hope yours is such as simple a solution.

Thanks for all the suggestions Guys and apologies for my stupidity, or my memory module failure anyway. Hehe!

If only the error message had been more meaningful such as "Incorrect username or password" instead of the totally misleading "Authenticating..."   

Ooh shucks  I was doing the same ie using the wrong password from the card that came with the hub. I was inputting the admin password code instead of the wireless key code
Put in correct code hey presto up and running. Glad I came on here and read your message before I took it back to PC World. Would have been tad embarrassing to say the least. The fact that it asked for password instead of wireless key threw me

Thanks to everyone for their input hope the wife enjoys her new toy (I might have a go on it once in a while)


   

Merry Xmas and welcome.
Do you mean bluetooth?
If so, Have you tried the app PDA tablet? I use that to tether with my cell phone.
Sent from my Nexus 7 using Tapatalk 2

No its not a bluetooth problem we cannot connect with internet via our hub when selecting it.

I assume you need to connect to internet first before you can do anything. We got a "quick start guide" in the package that doesn't tell you much