Not using an actual router, merely connecting via the "Connect via Nintendo USB Wi-Fi Connection" button (as opposed to the 3 manual connections). Have the USB dongle attached via the supplied extension cable in one of my front USB ports.
The drivers are the 1.04 version, and they WERE on Nintendo's forums until they took the forums down for maintenance, I obtained them via a Rapidshare link which links to a file containing the updated software.
Drivers in RAR format
Drivers in ZIP Format
Once I got these, I then proceeded to delete all traces of the dongle from my system by doing the following (I use Windows XP) :
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				# Check Local Area Connections to determine what the Internet Connection Sharing (ICS) options are set to. 
Which option is correct will depend on how you have your computer set up. 
 
Unless indicated otherwise, make sure the USB connector is connected to the computer throughout these steps. 
 
To perform the following steps, you will need to access your computer's Local Area Connection screen. To do this, click the Start button, select Control Panel and click on the Network Connections option. 
 
   1. Adjust the ICS options as needed: 
 
      If one Local Area Network is listed on the Local Area Connection screen, other than the USB Connector: 
          * Right click on that connection, select Properties, and then the Advanced tab. 
          * If the ICS options are enabled, uncheck all boxes under the ICS area to disable them. 
          * If the ICS options are disabled, check all boxes under the ICS area to enable them.| 
 
      If two or more Local Area Networks are listed on the Local Area Connection screen, other than the USB Connector: 
          * Right click on the "Network Card," select Properties, and then the Advanced tab. 
          * Uncheck all boxes under the ICS area to disable them. (If you are getting an Internet Connection Sharing error, the ICS settings were most likely enabled (checked).) 
 
   2. Uninstall the USB connector through the Device Manager. 
 
          * Make sure you have the USB Connector plugged into your computer. 
          * Click the Start button and select Control Panel. 
          * Click "System" and select the "Hardware" tab. Choose "Device Manager." 
          * Next to "Network Adapters," click the "+" to expand the list. 
          * If the Nintendo USB Connector is in the list, right-click it and choose "Uninstall." 
 
   3. Perform the DEVREMOV process. 
          * Make sure you have the USB Connector plugged into your computer. 
          * On your computer, click on the "My Computer" icon (found in the Start menu or sometimes on the desktop), and right click on your CD drive containing the Nintendo Wi-Fi connection Installation CD, and choose 'Explore.' 
          * Open "NintendoWFCReg/SoftAP." Within there, double-click the DEVREMOV.exe application. 
 
      During the course of running the DEVREMOV program, you will see three windows pop up successively. 
          * The first will have a series of question marks. Click "Yes." 
          * The second will have a picture of wires and lights moving on it while the DEVREMOV utility uninstalls the internet connection sharing for the Nintendo Wi-FI USB Connector. This will disappear on its own. 
          * The third will also have several question marks on it. Just click "Ok." 
          * At this point, remove the USB connector from your computer. 
 
   4. Check the "Programs" list and, if the "Uninstall" option for the connector is there, run this process. 
 
          * Click the Start button , and select "Programs." 
          * If the Nintendo USB Wi-Fi Connector is listed, click on the "Uninstall" program to remove it. 
 
   5. Check Add/Remove Software on the computer and, if listed, remove the USB connector. 
 
          * Click the Start button, and select Control Panel. 
          * Open "Add/Remove Programs." 
          * If listed, select the Nintendo Wi-Fi connector from the list, and click "Remove." 
          * Follow the prompts to uninstall the program. 
 
   6. Remove the installation CD, power down your computer, and disconnect the USB connector if it is still connected. Being sure to leave the connector disconnected, power on the computer. 
			
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 Once I made sure it was definitely gone and I'd restarted the computer, I went into the Network Setup Wizard and set up the ICS. Made sure that my computer (which is the only one net connected) was sharing the cable modem connection. I then reinstalled the Wi-Fi connector using the UPDATED software found in the RAR/ZIP file (depending on which you download). I didn't expect it to make much of a difference considering what I'd done before but lo and behold, it both found the Wi-Fi Connector and THEN did a successful connection test. I've since tested the same connection with a game (Pokemon Diamond) and it works fine.
Hopefully it will work OK for you too, as I saw your post earlier when searching for the problem, but thought you may have found a solution by now