the good news is the wireless usb adapter is getting recognized which indicates theres no hardware based problems with it
however a common issue experienced when connecting any wireless device is conflicts,and these are caused by too much software attempting to configure the same device
when you connect any wireless network device windows will begin the wireless connection wizard by default,however theres a good chance you have also installed software(and drivers) when you set up the wireless usb adapter
and finally your isp would of given you a software setup disk for your wireless router that come as part of your broadband package
so theres three peices of software all configured to run your wireless network,theres no wonder why wireless devices get confused and dont work correctly,so heres the solution :
1) as you cannot remove the windows wireless set-up in the control panel you should remove the wireless software that came with your wireless usb adapter....also remove the drivers,however dont worry,once you have done this,go to device manager and were the device is reinstall the drivers(making sure the driver disk is in the dvdrw drive,and this will reinstall just the drivers and not the software)
2)then once this is done look for the wireless icon in the taskbar and when you move your mouse over this it will inform you there are "wireless networks avalible"..look for your ssid and then click connect,and then you will be asked for your wireless security key...enter this and you should be able to connect to the wireless network...and then the internet
note : i had a similar problem to yours with my wifes acer aspire laptop and sorted it out by removing the acer empowering technology "e-net" connection software which was conflicting with the windows wireless connection utility..sometimes too much of a good thing isnt that good!
any problems let me know
good luck jon !