Chris, Thanks for your message, went out for an hour as I was quite perplexed over this issue. I have now started from scratch and for whatever reason its working now. Fingers crossed nothing else happens. Nothing is as easy as it says on the box, I have become to learn that the hard way. Thanks to everyone who posted on this thread. I've now to make the PC 2 "Wireless accessable". Wish me luck.
PS: Did I read somewhere that routers can be affected by mobile phones, wireless keyboards and mouse? Is there any other tips to forward on to me.