I have the Laptop 1 metre from the Router/Access Gateway but I can't get it to

I have...

XP Pro
Netgear WGT 624v2 Gateway,Router connected via LAN to PC
Compex WLU11a USB wireless connected to Laptop

WGT 624 data in Netgear program
'Wireless Settings' the WGT in this way..

Network Name SSID
Channel 11
g and b

WEP enabled
Auth Type Shared
Strength 64 bit
Generated encript 4 keys Default is #1
'Advanced Settings'
Enabled wireless router radio
Enable SSID broadcast
Fragmentation 2346
Preamble Mode Automatic

Enabled Xtrened range feature
'Wireless Card access List'

Device Name
Correct MAC address
Enabled Turn Access Control ON
Router Status

Region Australia
Channel 11
Mode g and b
Wireless AP ON
Broadcast Name ON

LAPTOP Settings

Wireless network Connect in XP
SSID is correct
Network Auth Open
Data Encrypt WEP
Network Key is #1 of 4 keys in WGT program
Key Index is 1

Any available Network is enabled to infrastructure

In Choose a Network Connection Panel I see the correct SSID with all green bars
full and a star. Says it is security enabled and to click 'Connect'

I then see the security panel with the WEP key already in it.
Click to Connect

See the panel with the connect animation and ''Waiting for the Network'...
This lasts for minute or two then..

'No wireless networks were found in range'

Remember the laptop is only 1 metre from the Router/Access.

Hope you can help,