is this possible with arduino?

Hello drsynister, wow what school to you go to? I must enlist (actually I'm signing up at ETS in January, yay back to school! ;o)

Here's my answer though: if you want the easy way around, yeah just buy a prebuilt device and mod it. If you're looking to impress a teacher, it is possible to interact with a Prism2 wifi card (a/b only). The Procyon AVRLib has a driver that would probably work with the Arduino with very little modifications. But don't expect it to be a smooth road.

Hope this helps.