Mac & PC on Wireless Network - Encryption Causes Problems

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I have recently moved into a new house with a friend and we are having problems getting both my mac and his pc to connect to the internet via a wireless network.

I have a a Macbook (the old White 'Plastic' kind) running OSX (10.5 Leopard) and he has an Acer Aspire 5630 laptop running Windows Vista and we have a Tiscalli wireless modem/router

I have used my Macbook to connect to a BT homehub network in my previous home and that had both PCs and Macs connected fine using a WEP encryption.

Now we find that if we use WEP encryption then the PC can connect fine and the Mac claims to have connected to the network but cannot load any internet pages (Cannot connect to Server Error) but if we use a WPA encryption then the Mac connects to the internet fine but the PC always fails to connect to the network, timing out when attempting to renew its IP address.

Both computers work fine without any security but obviously we don't want to use this option!

I know that MAC filtering is switched off, SSID broadcast is on and both computers have the latest updates to their firmware and drivers.

Is this encryption problem happening for anyone else or is it a flaw with the Tisalli router? it was free after all!

Thanks for any help
 

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