If it's "local only", and is connecting but isn't getting an IP address from the DHCP server, it sounds as if the server is running some kind of security protocol - maybe MAC address checking, maybe "fixed IP addresses only" for all wireless connections. I do that with my home network: if you know the WEP code, you still can't connect to the Internet through it. I tell it your MAC code, and the IP to give you.
This thread may be some help.