How does Windows XP deal with non-broadcast SSIDs?
In Windows XP or Server 2003, users can connect to non-broadcast networks by configuring a preferred wireless network either manually or through Group Policy. A non-broadcast network will not appear in the “Choose a wireless network” dialog box.
The wireless supplicant will look at all the available networks and try to match them up to the networks in its preferred list. If it finds a match set to automatic connection, a connection attempt will be made. If no match is found after comparing visible networks to the preferred list, it will start plumbing down each network in the preferred list from top to bottom. It will wait two seconds to see if a connection is made, then proceed to plumb down the next one in the list.
This process will allow the supplicant to connect to a hidden network if it is in range, but only if no other preferred networks are available and visible. Because of this, even if a non-broadcast network is at the top of the preferred list, it won't take priority over a broadcast network lower in the list.
In order to address this problem, you can apply Windows Server 2003 SP2 or the wireless update from KB article 917021 to Windows XP SP2 machines. This allows you to configure wireless networks as broadcast or as non-broadcast networks. You can also configure this new setting through Group Policy from a computer that is running Windows Vista. If a non-broadcast network is configured as preferred, the XP client will now probe for it every 60 seconds, in effect broadcasting the SSID of the network.