|I have tried the windows config too as an alternative but I have WPA-PSK security on the router and windows xp cant handle that.|
Actually, Windows XP has no issues with WPA encryption. I'm using it on our training lab and those are all XP Pro laptops connecting to it. I suspect the issue is your wireless interface.
First, check to ensure you have the most recent drivers for the device installed. If you don't, then download and install them and test. If everything works fine, problem solved.
If it doesn't, then you need to test with another wireless client (or more than one if possible). Does it connect OK? Does it encounter the same issue? If it does have the same problem then the issue could be your wireless router. In that case, click on my name above in my response and read my "how-to" guide titled, "Troubleshooting Wireless Issues"
If this is the only wireless computer that's having this issue, try that wireless NIC in another computer. If the problem occurs on the other computer, then you have a bad NIC. If the problem doesn't occur on the other computer, then it's likely the computer you have it plugged into is having issues.......be they hardware or software............and you'll have to get someone to have a look at it that knows what they're doing.
It matters not how straight the gate,
How charged with punishments the scroll,
I am the master of my fate;
I am the captain of my soul.