Cant detect networks on two different devices?

Hello all,

Ive got a real headscratcher here. I have an IBM thinkpad T41 with an intergrated atheros wireless adapter. Windows wont detect any wireless networks. After trying a few things I decided its time for a new wireless device...

I purchased a Realtek usb wireless adapter; no luck. Windows still will not detect wireless networks. And yes, Im using the new device.

So it appears it has nothing to do with the wireless device. Its a software issue! grrr..

Why would windows not detect any networks?! I know the router works fine as theres 2 laptops and an Ipad connected.

Next up, I ran Puppy linux from a live CD. The wireless set up wizard found wireless networks...everyones but mine...

No matter how many times I scan it will only find the neighbours wireless. So next I tried Pwireless (still on puppy here) and that finds my BT home hub but wont connect!

So back to windows:

winsockfix: no luck
netstumbler: finds my router on the new wireless device.

So why cant I detect or connect to my network? Any help is greatly appreciated.

Cheers

ps. the laptop is running xp and was bought refurbished.

update:

ipconfig /all tells me "An internal error occurred: A device attached to the system is not functioning."

This happens weather or not the integrated wireless adapter is enabled or disabled.

Help!