BT Fon hotspots are often incorrectly picked up as 'BT OpenZone' and I don't believe the o2 connection manager can distinguish between the two. This is a problem with how BT identify their WiFi network(s) and not with the o2 connection manager.
HOWEVER, it does sound like you are connecting to a proper BT OpenZone since you get to the o2 landing page. Text 'WIFI' to 2121 from the connection manager software and this will reset your dongles mac address with BT OpenZone and may let you get access. This can take up to 24 hours to reset though!
Only thing I can suggest...