Well, so basically you need to update that driver. In looking through your driver, I can see that wg111v2.sys date from 2007. Window 7 doesn't like out of date driver, and based on what you have described so far, it is probably the cause.
wg111v2 wg111v2.sys Mon Feb 12 14:09:50 2007 (45D012BE)
Please update the driver rightaway, it is NETGEAR WG111v2 54Mbps Wireless USB 2.0 Adapter NT Driver
I still see the Conexant driver still date from 2008, update them please
And this as well, they also product from NetGear
scmndisp scmndisp.sys Wed Jan 17 14:48:03 2007 (45ADD4B3) NetGear, Neutral wireless solution
Please don't turn on Driver Verifier yet. If you already did turn it on, turn it off and update the drivers. You need to update the netgear driver rightnow, it is the cause.
Who knows about window better than Microsoft? That's why I suggested you to use MSE for testing purpose. If that is not the cause, you can reinstall anytime you want
Your choice, I'm always happy to help u, but u need to follow my advise