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Is it possible to setup An Aironet 1231 (Fat-AP) to work via wpa, by itself?
IF so does any have any links or docs showing setup?
It's possible if you have a new-enough radio.
I think you need an RM21 or better radio module; it's listed in the "WPA" FAQs on the main Cisco site. (search for "WPA")
The issue is that the original generation(s) of radio didn't have the co-processor to do the AES encryption.
check this link it should have your answer or point you in the right direction.
one word of advice use the GUI interface, do not use the CLI to do this there are to many interrelated statements needed in the config file.