T500 Wireless troubles

Hi all,
After extensive googling and forum bashing (and obviously not finding a clear cut answer), i've decided to put this problem out there -
I have a T500 which is 2 days old, with an intel 5100 wireless card. My old laptop (a T42) can connect to the wireless network (secured) at my place. The router is a d-link DI-624 with the most recent firmware update. The T500 can't connect to the wireless network for some reason. The signal is 'very strong', and it asks me for a password. Although the password comes out as 8 digits (my password is obviously 10 digits), i read that it's just the GUI doing some tricky dicky privacy thing. It takes a little while to think, but in the end all i get is 'limited or no connectivity'.
I checked the router settings and all that. Channels, g-modes etc. etc. The log on the router says that it had registered my MAC address, but unlike for my T42, it did not allocate me an ip in the vicinity of 192.168.0.100+ (which would mean it was working).
Anyway, out of desperation i reformatted the thing so now i have a super clean windows XP home (sp 3) installation. The only drivers i have installed are the power management, wireless lan (the most up to date drivers) and ATI graphics ones. The wireless radio is 'on' (?), and everything else is exactly the same as my old laptop.
It can't be my router as my family can all connect to it, and so can I. The only quirky thing is that on my T42 (XP SP1) i can set the index key to 0. It was previously at 1, and for some reason wasn't connecting until i changed it to 0 (might just be computer fate). But, of course, the index key on the T 500 only goes from 1-4 (don't know if this matters so much).
Long story short - i don't think it's the router. It doesn't use filtering. I can see the wireless network. I can enter my password. I have no firewalls (the installation is CLEAN 100% pretty much). I have the most up-to-date driver for the wireless card (should i have a less updated driver?). I have the wireless radio 'ON' and i think i have all bases covered. (oh, and because it's clean i have NO lenovo apps)
Is the problem a hardware thing? a driver thing? or just some stupid thing i've missed. Please help i have tried pretty **bleep** hard to fix it.

can you back date the bios to the older one?
Regards,
Jin Li
May this year, be the year of 'DO'!
I am a volunteer, and not a paid staff of Lenovo or Microsoft

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