I had the same problem on my 701, and found the answer on the eeeuser.com wiki... It appears that the wifi does not work after 8.04.1 install... I will now quote the information that I found on that site...

Open a terminal window (Applications->Accessories->Terminal) and enter the following commands:

sudo apt-get update sudo apt-get install build-essential wget 'http://snapshots.madwifi-project.org/madwifi-hal-0.10.5.6-current.tar.gz' (updated URL) tar zxvf madwifi-hal-0.10.5.6-current.tar.gz cd madwifi-hal-0.10.5.6-*/ (updated command; original did not append /) make clean make sudo make install sudo reboot

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- The only problem that I had with this was the keyring wanting to control my every move... I deleted this file, and the system recreated another, but this one I set up properly... It will always require you to log-in, but wifi works A-OK!!

One last note from eeeuser.com... System updates (specifically new generic kernels) will reverse these changes; simply repeat the above to make your wifi work again...