Help setting up wireless connection

2 weeks and counting..... Since I lost my wireless connection to the internet. First noticed when my x-box live wouldn't connect to the network. Fired up my laptop and no connection. When I first got my laptop a year and a half ago I had problems setting up my wireless connections but after playing around with it I managed to somehow get it to work. Now, however It seems that when I fire up my laptop it sees 3 wireless networks. Mines, and I guess 2 others around my neighborhood. The signal strength for mines and one other is strong but the little icon on the bottom right hand corner that indicates wireless connection has a red x and the bubble says "Wireless network connection Not Connected right click here for more options." When I click on view network connections it says my Wireless Network Connection is not connected. When I hit repair it says...."Unable to connect to preferred wireless network blah blah blah..." Then it says "windows could not finish repairing the problem because the following action cannot be completed: Connecting to the wireless network" What the heck does this mean!? My laptop is using a Atheros AR5001X+ Wireless network card. My router is a netgear WGR614 V4. Windows XP Home Edition Version 2002 Service Pack 2

As far as I can tell I setup my router the way I think it should be set the SSID name, channel, Region, Enabled wireless access point, set wireless access list.. the router automatically displays 3 MAC addresses one for my psp, laptop, one unknown (I suspect that this is either the x-box live thing or the ps2 online adapter which I haven't used for years. My WEP is set to automatic and encryption is disabled. When setting up my laptop i use the same SSID name but I still get problems. Do I need to reset the router? The lights in front of the router indicates that I have wireless connection. Any help will trully be appreciated.
Thanks,
Mohadiib