EyeFi Mobile X2 will not connect to Wifi

So new EyeFi card will not connect to my router with the error message "waiting for a network address", after some investigation the logfile shows this:

eyefi AssocResp: Error status 0x0002, aid: ffff, error/cap: 0xfffc (Auth response timeout)

Which according to this site http://forums.eye.fi/viewtopic.php?f=2&t=3347 can indicate a faulty card reader, I plugged the reader directly into my USB port and hey-presto. Everything worked.