After waiting for several days to hear back from any Samsung tech on this site I got frustrated and irritated enough to post a question at ask.com ($17 deposit)and within 24 hours got reply from a qualified person. Quite simple - Samsung USB adapter and TV will not accept any network security passwords containing letters different then a-f. I wish this was stated somewhere in the TV manual.
There you have it... hope this will save somebody major headache and aggravation.