AD7000W setup very confusing??

Hi, I have just bought one of these and the quick start guide seems pretty useless?

We have computers and iphones in the home all connected to a BT Router fine.

I use the quick start guide to set this up and get all the way through the points, until I get to the point about opening Safari, and entering 192.168.1.1 from the iPhone.

This works, and gets me to the set up page where I can choose my router and WPA password. I then click ok, and I just get :

"Safari cannot open the page because the server cannot be found" ??

This happens every time? Therefore I never get a beep from the Unit and its not set up? - Im tearing my hair out!

I have had this working in the "incorrect sense" though..

I chose the Philips in WIFI settings, and in my iPhone itunes, the "airplay' emblem and I can play to the AD7000W..

But this is easily forgotten and i have no internet/WiFi whilst in this mode??

Can anyone help, and does this retain the settings after its switched off so we can just connect again???