I am trying to network Laptop (Toshiba Satellite with inbuilt wireless adapter, ethernet LAN) To My Desktop machine (inbuilt Ethernet) and USB Wireless. Wireless connection says

connected on both machines but I can neither can see shares across the network

nor brows or connect to the internet from the laptop.
My physical network is laid out as follows Desktop > cat five (crossover cable)>laptop and USB wireless on desktop to inbuilt wireless (Atheros AR5005G) on the laptop.
I would be real grateful if any one can sugest how I can get these machines talking. If you think you could help I would be happy to furnish you with more detailed specs of my machines.
Deskto status icons report as follows:-
Ethernet LAN reports:- status=Connected ,Speed=100mb
Wireless Network reports Status=Connected, Speed =-54mb, connection =Peer to peer
There is also another icon for WLAN which reports = Connect to terry and when right clicked gives you the 'Wireless Configeration Utility HW.32' Property sheet with the following tabs and details:-
Status
Connected to = terry: **-**-**-**-**
Network Mode = 802.11 ad-Hoc
Channel=10
Transmit rate=48mb
Encryption=WEP (the SSID & keys ARE the same on each machine !)
Data Transmited= 2434
Data received=0
Signal strenth=Ad-Hoc
Link Quality=Ad Hoc