Xbox live wireless

[Substance]

I just got the official wireless adaptor for me 360 and when i try to connect to my network it finds it fine and asks for the wep key but once all that is done and i go to the xbox live test it says

Wireless adapter : USB wireless
Wireless network : not connected

but now if i go to find networks again it says my network is connected, but it still fails the tests,

I have tried google but had no luck anyone here had similar problems?

Thanks

 

[Substance]

Just tried that and it still does the same on an unsecured network, any other ideas?

 

[Substance]

They are both in the same room, the signal is perfect, i am not blocking the mac at all but on the dhcp screen it doesnt even assign my 360 an IP,

I have tried everything i can think of, if i plug in the ethernet cable it connnects instantly