Okay... my instructions were for XP... Not familiar with the layout of Win7.
Maybe one of the others can hop in!
You say that manage wireless networs showed your Wireless Network,
and that it says you are connected already, but that it is not working?
Have you tried resetting your router?
From your wired connection, and a browser, go to your router and look through the connections listed. Specific instructions will vary from router to router, but I am wondering if your router is unable to see your wireless laptop/desktop. Using "Ping" you should be able to learn something.
Use google to find the manual for your router. The manual will probably have troubleshooting.
Note also... I do not believe you will be able to use the wireless connection if you are already connected by the LAN connection.
I am just about done here for tonight, and I have another busy week ahead, and may not get back now till next Sunday and Monday.
Others may need to pick up on helping you from here.
If you do not get more help soon, you might try pm to one of those who help with networking issues.
Note... unless someone has already replied to your note, it is usually best to simply edit, adding the additional information to the previous note, rather than adding a bunch of notes in a row. Makes it look like you have a very active thread, and others are less likely to look in to try to help.
Thanks, Mailpup, for merging his posts!