Req: Help - connecting two machines (one wireless) via Draytek Vigor 2600g

I have a Draytek 2600g wireless router as seen here:

formatting link

A desktop machine is connected via network cable with all settings in TCP/IP, DNS etc., set to obtain automatically. This system is running XP Pro SP2 and connects to the net via the router. The gateway is set to 192.168.1.1 (default).

The system has a unique name for this machine and the group setting is the default "WORKGROUP". However, the system will not identify itself on the network in "My Network Places" despite the 'network' connection being live and working.

The other machine is a laptop with a Belkin 802.11g wireless network card installed. TCP/IP settings are set to automatic as above and the system connects to the router and to the internet via the router's gateway when all security settings are left "open". However this system also does not find itself in "My Network Places".

Also, it will not connect to the router when using added security with the WPA-PSK option. I have set both the router and the laptop to use WPA-PSK/TKIP and tried using both hex and ascii passphrases. To give examples:

ASCII: abcdef123 HEX:

0xabcdef1234abcdef1234abcdef1234abcdef1234abcdef1234abcdef1234abcd

I have input both and niether will work. The router says the above hex phrase is too long, and will only accept a 62 character string without the "0x" prefix. Windows network setup will not accept anything resembling a hex phrase. Both systems will accept the ASCII phrase, but then the laptop and router will not talk to each other. Clearing everything back to "open" establishes the connection once more.

Can anyone please assist?

Thanks.