Credit for this solution goes to someone at the following site: Vidddler.com
To note; this is the WG111T and NOT the WG111/v2/v3, which have different drivers.
Download the 2.1 drivers from netgear.com
Uninstall any failed attewmpts at installing it, and unplug the stick
Run the installation until it gets to the "plug in the stick" part. Do not plug in the stick: do not press next.
Using explorer, goto the place you started installing the software (usually c:\program Files(x86)\Netgear\WG111T\
Step 5: Copy the file "WG111Tvx.inf" from teh "Drivers" directory into the "Netgear Directory". You will need to say you're happy as an administrator to do this
Step 6: Using the taskmanager (Ctrl-Alt-Delete then "start task manager") select the WG111T installation program under "applications" and then "end task"
Step 7: Plug in the device
Step 8: Either the window comes up to install the drivers, or goto control panel -> Hardware and sound -> Device manager
Step 9: Select the WG111T from under "network adapters"
Step 10: right-click on it and "Update Driver Software"
Step 11: Select "browse my computer for driver software"; select where you put the WG111Tvx.inf
Step 12: It will install the driver, and continue the software install. Continue to select teh appropriae settings.
Step 13: The device should now be working and picking up networks. it tries to load the netgear software however for me that failed and I just used the windows config to select the network and put in the appropriate key.
I'm hoping this helps: I'm posting it because I spent about 8 hours trying to find the problem, and this site came closest.