Wireless Connection Established But Cannot Communicate

Hi, I seem to have configured peer-to-peer wireless connection correctly. The tray icon shows:

Wireless Network Connection (Peer-to-Peer)
Spped: 2.0Mbps
Signal Strength: Very Good
Status: Connected

I have also changed windows firewall settings for ICS and ICMP for Remote Desktop, FTP Server and many other things. But I cannot telnet or ping the host computer using this wireless connection with IP shown on the Wireless Network Connection Status.

When I ping the host computer, it respond with repeated message: request timed out. Also, how do I configure IE to use this connection to surf the web ? By the way, my IE has used Broadband DSL as a default connection.

My question is:

What is wrong with this configuration ?

Thanks,
Stephens