Airport Installed But No Signal

Hi, I'm having connection issues with the original airport card in my imac. It previously worked and now is not. Perhaps you can help. Here's my troubleshooting process thus far:
1. Airport card is inserted securely and antenna is connected.
2. Airport status is greyed out in task bar. Internet Connect shows absolutely no signal strength.
3. My iBook G4 sits next to iMac and is able to connect to my router as well as detect other networks.
4. PRAM has been reset. Disk permissions have been verified and repaired.
5. For a brief second, the airport icon in task bar detected three neighbouring networks, but not mine. However this was very brief and no networks show up now.
6. I had both computers connected previously via ethernet. Now each computer is unable to access the other's drop box. I'm also only able to connect as a "guest."
7. I tried to create a wireless network between both computers to no avail. However, when I created a network on the iMac, signal strength suddenly went to full.
I think that's about it. Any help would be greatly appreciated.

Per your numbering...
(1) Since the time it worked previously, have the card and adapter been removed? Or have they been installed in the iMac and not touched since that time?
(2) Make sure you do not have +Internet Sharing+ (set to share Ethernet using AirPort) enabled. Actually, turn OFF +Internet Sharing+ in System Preferences Sharing pane for now. Disconnect anything connected to the Ethernet port. In System Preferences Network pane, Show *Network Port Configurations* and make sure AirPort is at the top of the list. You may also want to turn off the services you do not use for networking, such as FireWire and Internal Modem. If you made any changes, be sure to click +Apply Now+, then restart.
(4) Did you also try reseting the PMU. This is the procedure
http://mrjcd.com/junk/PMU.jpg
If you have a voltmeter, check the PRAM battery if possible. If you disconnect the iMac from power for a while, that probably serves the purpose of the PMU reset as well. When the iMac is reconnected to power and stared up, do not connect any peripheral (USB/FireWire) devices, except standard keyboard and mouse. Try the AirPort connection again.
Also, try starting up in Safe Mode
http://support.apple.com/kb/HT1455
This will run some maintenance during startup. It will also start up with only Apple's essential system extensions and processes running; try using the AirPort connection again in Safe Mode.
(6) That may be an unrelated problem. Can the iMac still access the Internet using a wired Ethernet connection?
(7) If the iMac can still connect to the Internet using Ethernet, what happens when you go to System Preferences Sharing pane +Internet Sharing+ tab and turn ON +Internet Sharing+ ? Set it to +Share your connection from *Built-in Ethernet* To computers using AirPort+. Then, try to use your iBook's AirPort to access this wireless network created by the iMac. Does that work?

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