Thank you! Thank you! Sorry for the delay in responding, but the backup image was a little above my head and threw me, so it took a while to implement. I too had disabled firewalls and antivirus which didn't work. But adding your suggestion of removal of the firewall/antivirus programs to the following 9 steps did work. Don't know if all were necessary,
1. Uninstall firewall/antivirus programs on both computers: Blink on one PC and McAfee on other
2. Disable wireless adapters on both computers and connect them via ethernet
3. Leave the homegroup on the "joined" computer
4. Reset the router and create new network
5. Create homegroup on one PC and join with other.
6. Disconnect Ethernet, Enable wireless network adapter.
7. Joined wireless network (creating wireless configuration) on each computer. Windows then shows 2 networks with same name (except one name has a number after it).
8. Merged the two networks
9. Tested to see that homegroup still functions. Success!
For other people looking for a solution, I also found the following link on this site and implemented any unimplemented steps there before beginning steps 1-9.
Ultimate Troubleshooting Guide for Windows 7 HomeGroup Connection Issues