PEAP authentication is managed between the PEAP supplicant and the authentication server (Radius).
In first phase the client authenticates the server using a TLS -Transport Layer Security, certificate-based mechanism.
Select your encryption type from the "Network Authentication" and "Data Encryption" drop downs.
Uncheck "The key is provided for me automatically" and enter and confirm your Network key.
In the next window click on the "Authentication" tab, Make sure "Enable IEEE 802.1x...." checkbox is UN-Checked, the rest of this window should be greyed out.
If your network is Encrypted go on to step 6 otherwise Click ok and try to connect to your network again.
After about 30 minutes of fiddling around with various settings, I was able to figure out what the problem was.
Step 5 Select the Authentication tab and uncheck the Enable IEEE 802.1x authentication for this network box.
First, click on the wireless icon in your taskbar and under Related Tasks, choose Change advanced settings.
Now click on the Wireless Networks tab and select the network in the list at the bottom.
PEAP is based on server side EAP-TLS authentication.
With PEAP many organizations can avoid the issues associated with installing digital certificates on every client device as required by EAP-TLS; instead, they can select the methods of client authentication, such as logon passwords or OTPs that best suit their corporate needs.