Have you got any encryption turned on right now? It can often interfere with DHCP/IP addresses. Also other things to try: restarting router, checking config settings (espically DHCP), and changing connection settings.

Nope, no encryption turned on, not to my knowledge. Tried other laptop too, in-built wireless detects immediately but this one fails to renew the IP.

Could you please give me more specifics pointers on config/connection settings, in case If I missed something

Does driver 2.0 (http://kbserver.netgear.com/products/wg111v2.asp and downloaded version 2.0.) works fine? Well, I tried all three there anyway.

Always try the latest driver software -- older versions rarely work better than newer ones.

What about connecting the adapter to the laptop that has built-in wireless? Can you get an IP address through the adapter when it's connected to the other one?

No, tried that too. If that's the case then my first attempt to ipconfig /release/renew should have been worked. built-in wireless detects within a few seconds, but this netgear thing fails.

First I thought Green icon on task bar is a sign of success, but then realized that it is just there to make you feel better, actual IP is the real thing in order to go online.

To your first reply, I tried restarting the router (It's d-link, don't know the exact model as someone else controls the router). It didn't work.

I went to reseller yesterday to find out more, he said the WG111v2 is not compatible with some B routers and some D routers. I don't know what the hack he was talking about.

I think I am missing just one bit somewhere.

Wireless standards use letters of the alphabet to label speed. I can't remember the exact specifications, but the current one is 'G' and is supposed to be 54 mpb/s. (Actually 'N' is out, but it's not quite the standard yet.)

Older routers will be 'B', so I think you should check the specs of the router to see what speed it's at. That could very well be your problem.