Question Author
Yes, the laptop will pick up wireless networks in the neighbourhood but not my Livebox which is two feet away. The Livebox is showing me that its wireless is on, which I know is right because my PSP connected once upon-upon-a-time and still occasionally picks up fleetingly but not long enough to connect.
I've done the wizard but you don't really need it for wireless connection if you've got XP, which I have, which the Livebox Help tells you as well.