yes, mac filtering should be disabled because it only messes up the connection, and it is more advisable to set up your wep key instead of mac filtering...
about the connection, try disabling wep first and try if you can connect,
if it still does not connect, try this:
(only if you're using xp)
go to the device manager and check network adapters and uninstall your wireless device driver, just hit ok for the warning message... then if the icon disappears from the network adapters list, click on "actions" then click on "scan for hardware changes"...
this method refreshes the connection
if it still does not work, try this :
go to control panel/network connections and right click your local area connection and open the properties window then click on the "internet protocol tcp/ip" then click the properties button just right below it (dont remove the check)
then make sure than both "obtain an ip... " and "obtain a DNS..." are selected ... do this method on the "internet protocol tcp/ip" of the wireless icon as well...
and of course, make sure that the wireless zero service has started
if it still does not work, it means that your versalink 327w, or your wireless hardware is not working or installed properly, so make sure first that your modem and wireless device is installe and turned-on properly ( and it is advisable to check for wired internet connection first)
trust me on this one, i work for verizon dsl..