Windows 7 connectivity issue with second WPA2 profile

Hi, am having a few issues setting up a new WPA2 small office wireless network and am looking for some advice on what might be a known issue.

Network is using a brand new (bought yesterda after the old netgear was deemed past it) Belkin wireless G modem router.
All wired connections are working fine, across 3 Macs, 1 XP PC and 1 Windows 7 laptop.

The router is configured for WPA2 with PSK, ad set to use both encryption types.
The XP machine has a 3rd revision Belkin USB adaptor that has a stable connection to the Belkin wireless, -t ping shows it drop every once in a while but thats not a concern at the mo. This is an ancient machine that took all of 2 minutes to create a WPA2 connection.
I have run InSSIDer for a good 30 minutes without a significant dropoff in wireless strength.
The Windows 7 Laptop has uptodate Network drivers.

The issue occurs when i unplug the ethernet and use the systray icon to autoconnect to the Belkin on the Windows 7 Laptop. Windows asks for the key, thinks for a bit then decides it doesnt want to connect for whatever reason. Running the diagnostic informs me i need to reset the router, which of course is rubbish.
I also have deleted any existing wireless profiles created through autoconnecting and created a new profile from scratch. This did actually succeed once (i have tried both methods 4-5 times each) but connection was lost very quickly.

Heres the clincher - the laptop is used at this small office but taken home at night where the lady uses a WPA2 home network and has no connectivity problems whatsoever.

Id appreciate any input anyone has as to why the laptop cant handle a second WPA2 connection.
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More about windows connectivity issue wpa2 profile
  1. No security at all on the router including WPS disabled same problem.
    So...its not the encryption type. The router came out of the box with the latest firmware apparantly. I can only believe that the problem lies with Windows 7 somewhere but im not that familiar with it as my main PC still uses Vista.
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