Possible problems:
* Your Kindle does not have its wireless switched on
* Your Kindle is not connecting to the router - possibly because the wifi password is not correctly set. Note, that's the wifi password, not your Amazon password
* Your Kindle is not synched to your Amazon account.
From everything you've said, I would guess the wifi password is the issue. See this page for more details:
http://www.amazon.co....wifi?nodeId=200727500