Trouble connecting WG111v3 on windows 7

I recently purchased a HP Compaq 6005 desktop running Windows 7 and have trouble connecting to the internet using my Netgear Wireless USB Adaptor WG111v3 version 2.0.0.

The Netgear Smart Wizard dialogue shows my Network Name (SSID) correctly, and I've entered my password in the WPA2-PSK [AES] window.  But it scans unsuccesfully through channels with the (red) "Unknown" showing all the time.  Meanwhile, down at the bottom right of my PC, "Connections are available" to wireless networks around me, but not to my own.

Device Manager does not list any exclamation points by any devices.

Router is working fine, laptops connecting without problem.

I've turned off the computer, turned off the router, turned it all on again, re-entered my password, still the same.

Thanks for reading and helping!

James