Wireless issues with USB device

Ok, so i've spent hours trying to resolve this but can't seem to come right.

I usuallly use my iphone 3gs teathering for internet access on my desktop win7 pro 32bit machine via USB.
We now have a wireless router (duoplus 300wr) - i have setup all other network devices prefectly (3 x laptops and my iphone can connect) using DHCP.
All have no issues with browsing. I also have another laptop wired into the router which works perfectly (also dhcp).

I bought a USB wireless adapter (canyon cnp-wf518n2) and am batteling to get my internet access up and running on my desktop (hp pro 3010).
What happens is that i CAN connect to the wireless network but CANT ping the router or browse the net (obviously).
I have tried static details with no luck. Static IP and also static DNS address.
Routers address is 10.0.0.2 and on all other devices the DNS address corresponds.
If i use our local ISP's DNS address instead ... it sometimes gives me a internet connection but even then the webpage cant be displayed "DNS lookup failed".
I have disabled the ethernet adapter. i have disabled IPV6. I have tried all wireless security settings on the router (wpa, wpa2).
I have scanned using malwarebytes, combofix, superantispyware and NOD32 with no results.
Windows firewall is completely disabled.

I have installed the oem drivers for the wireless USB nic and have also installed the updated version via the canyons wesbite.
I have used the supplied software and also the win7 wireless functions.

I did have a similar issue before on another machine and fixed this by removing the ethernet ip details (even though there was no cable plugged in) and it came right.
I checked on my machine and there was a static IP on the ethernet device but even after i set it to DHCP i am still having the same issue.

Any help would be really really helpfull.

Windows IP Configuration

Host Name . . . . . . . . . . . . : jagPC
Primary Dns Suffix . . . . . . . :
Node Type . . . . . . . . . . . . : Hybrid
IP Routing Enabled. . . . . . . . : No
WINS Proxy Enabled. . . . . . . . : No

Wireless LAN adapter Wireless Network Connection:

Connection-specific DNS Suffix . :
Description . . . . . . . . . . . : Realtek RTL8188SU Wireless LAN 802.11n US
B 2.0 Network Adapter
Physical Address. . . . . . . . . : 00-1F-1F-F3-3F-56
DHCP Enabled. . . . . . . . . . . : Yes
Autoconfiguration Enabled . . . . : Yes
Link-local IPv6 Address . . . . . : fe80::e94c:8ab9:7e24:adb1%16(Preferred)
IPv4 Address. . . . . . . . . . . : 10.0.0.6(Preferred)
Subnet Mask . . . . . . . . . . . : 255.255.255.0
Lease Obtained. . . . . . . . . . : 09 July 2011 02:50:00 PM
Lease Expires . . . . . . . . . . : 09 July 2011 03:55:40 PM
Default Gateway . . . . . . . . . : 10.0.0.2
DHCP Server . . . . . . . . . . . : 10.0.0.2
DHCPv6 IAID . . . . . . . . . . . : 268443423
DHCPv6 Client DUID. . . . . . . . : 00-01-00-01-13-3A-F6-58-18-A9-05-38-BB-EC

DNS Servers . . . . . . . . . . . : 10.0.0.2
NetBIOS over Tcpip. . . . . . . . : Enabled

Ethernet adapter Local Area Connection:

Media State . . . . . . . . . . . : Media disconnected
Connection-specific DNS Suffix . :
Description . . . . . . . . . . . : Realtek PCIe GBE Family Controller
Physical Address. . . . . . . . . : 18-A9-05-38-BB-EC
DHCP Enabled. . . . . . . . . . . : Yes
Autoconfiguration Enabled . . . . : Yes

Tunnel adapter isatap.{AB9A850A-8B51-4600-907D-97DA95FF3F2D}:

Media State . . . . . . . . . . . : Media disconnected
Connection-specific DNS Suffix . :
Description . . . . . . . . . . . : Microsoft ISATAP Adapter
Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
DHCP Enabled. . . . . . . . . . . : No
Autoconfiguration Enabled . . . . : Yes

Tunnel adapter isatap.{441BA5F4-DAB2-4052-934D-D3EFCB1353A7}:

Media State . . . . . . . . . . . : Media disconnected
Connection-specific DNS Suffix . :
Description . . . . . . . . . . . : Microsoft ISATAP Adapter #2
Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
DHCP Enabled. . . . . . . . . . . : No
Autoconfiguration Enabled . . . . : Yes

Tunnel adapter Local Area Connection* 11:

Media State . . . . . . . . . . . : Media disconnected
Connection-specific DNS Suffix . :
Description . . . . . . . . . . . : Microsoft Teredo Tunneling Adapter
Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
DHCP Enabled. . . . . . . . . . . : No
Autoconfiguration Enabled . . . . : Yes

desktop PC is a Hp Pro mt 3010

(HP Pro 3010 Microtower PC - HP Pro 3010 Microtower business PC - Overview - c01917308 - HP Business Support Center)

I have tried windows to configure the wireless connection (mostly) but i have also installed the OEM software and have also downloaded the updated software with on the suppliers site

(Download drivers and software)

My girlfriends laptop is running win7 64 bit and connects perfectly with the onboard wireless device.

I just plugged the USB into a different slot and it picked up a connection ... was able to ping google and have been able to browse onto a website.
Gonna try restart and see of it continues to work.
Just posting this quick incase someone is trying to figure it out.
Will keep you updated.
Thank you.

Yeah, that is weird ... maybe some come with built in wireless?
This one definately doesnt, i just checked the bios to make sure it wasnt disabled... that would have been cool.

I have tried every usb port and only one give the wireless connection internet access.
How weird is that ?
The connection is pretty slow aswell.
Maybe all my ports are faulty ?

Now it wont connect ... so strange.
I am leaning towards it being the actual USB device that is faulty.

I uninstalled the oem software and tried using just windows and the USB slot that was working ... still doesnt work.
When it was working i was using the updated software from the site.
Maybe i should take the USB adapter back and get them to test ?