Neighbour having limited access/local only connection

Hi, I'm hoping someone can help me and my neighbour with this problem he is having since having a new router installed. Every time he tries to connect he gets a message saying "connected limited access" or "local only" it's not his firewall or anti-virus as have disabled them I tried reconnecting with them turned off. Still no luck! Iam connected on my pc as is everyone else in my house with no troubles and full connectivity. I don't think it's a range problem as he is the closest and he is only next door and he has full bars. Tried copying the router settings via USB still no success. Would plugging his laptop in directly to the router/modem via LAN cable sort out the problem?

I am really stumped I have tried everything to my knowledge and I am pretty good with networking so this has pretty annoyed me
Any help would be much appreciated

Other things you should know: his firewall is disabled and windows defender he is running norton and his os is Vista. The wep key is also correct.
If you need any more info please let me know
Thanks