I need help connecting successfully to my home wireless network to gain internet access. I entered my data into the Wi-Fi setup menu. My 8820 (at&t) tells me ‘network acquired’ in the Wi-Fi diagnostics section. In the Wi-Fi connections tab, my phone displays a miniature antenna with bars but has next to it a yellow circle with a white bar going through it.

What am I doing wrong or what do I need to do to surf the net?

You need to have blackberry data plan.

If you have blackberry data plan, contact AT&T customer support: from the description you provided it appears blackberry successfully connected to your WiFi router but RIM servers do no recognize your device.