Dear Demetrios,
I have a brandnew HP Pavillion, and the first thing i did was installing the wireless LAN card, an Orinoco card.
This worked very well for the first hours.
Then i registered my copy of Windows XP at Microsoft. Then i got updates from microsoft. I accepted all of them, about 10 in total. After restarting the PC, things went wrong.
I got the situation accactly like you describe.
I had a good night sleep, and i realised that things where ok before downloading the updates.
Next morning, i removed all the updates, and result: Wireless LAN working super!!!
I do not know yet which update is causing the trouble, but i think that one of the latest updates is causing trouble.
My advice; please remove the updates( control panel, add-remove programs, wondows xp hotfixes)
Please remove one by one, starting with the latest, and check the result.
I will work the other way around, i have removed all, and i will install one by one.
Good luck,
Paul