Computer connects wirelessly but web pages don't load

[#1]

My son has a toshiba satellite L300D running Vista home premium and its connecting wirelessly through a Linksys Gateway WAG54G2
When searching for networks it finds the router and the password is accepted
Then it reads as connected but no webpages show up in the browser
I checked internet options to make sure that "Never dial a connection" was checked and under LAN settings checked "Automatically detect settings"
Internet on Main computer works fine
I reset the router from scratch and gave a new password which the toshiba accepted
In LAN TCP/IP  properties on main wired computer I found the IP address to be 192.168.1.100 so I set the laptop IP as 192.168.101 but nothing I try helps
Under Activities its showing that packets are being sent but 0 received
Could someone please walk me through procedures to remedy the problem
Thanks

[#2]

Connect and then from a cmd prompt type
ipconfig /all
You should get an ip in the range 192.168.1.100  and the default gateway should be the same as the desktop(this is the key bit) if the gateway is wrong or the ip address is some other address its not connecting. Sometimes it seems to acpect the password but in fact doesnt so you dont connect..
Once you are connected you should be able to go into the router from the other pc and see either dhcp clients or connected pc's to verify that you have actually connected.
If it doesnt work turn off encryption and try to get it connected you can then turn it back on once you know its all works. Failing that post the results of ipconfig /all from both pc's for more help