So after a call to tech support, I finally got this issue resolved. The timing of events is crucial here...
Plugged the camera into router via CAT 5 cable. Plugged power in. Noted that the camera showed up in the IP Camera tool.
Logged in to the camera by typing the IP address into Internet Explorer.
Under networks, told the camera to scan for WiFi networks. Usually, you hit the "scan" button and it does, then finds nothing. At which time you scan AGAIN and it finds all the available networks. Select the SSID of your home network.
The camera fills in the appropriate info. you must then type in the password to your encrypted network. Clearly if you don't use any encryption, that step won't be required.
THIS IS THE CRUCIAL PART!!
Let the device reboot (30+ seconds). Wait until th status indicator on IE then shows the device again.
Now close all active windows (dunno why this is required).
Unplug the LAN cable.
Camera should reboot.
Now go back in to IP Camera Tool...you ~should~ at this point see the camera, which means it is not wirelessly connected to your WiFi network!
Now log back in to IE to the IP address and you can set the device up from there.
Best to change the port to something besided 80 if you use port forwarding.