no workgroup recognized

I am running Windows 98SE on my desktop computer and have recently installed
a wireless b/g card to create an ad hoc network with my laptop (running XP
pro). The two cards seem to be "finding each other" as evidenced by
monitoring software that indicates strong signals between the two, but
neither computer recognizes the other. My desktop doesn't recognize any
workgroup (named "HOME" by me). The laptop (XP) also gives me an error
message stating that no workgroups were found.

I have tried running the setup wizard from XP on the 98SE system, but it
won't run. I have also checked the registry on my 98SE for network setup, as
mentioned in the Microsoft Knowledge Base but don't find the "auto on"
default, so I don't think that's the problem.

I have tried with and without NETBUI, and the outcome is the same.

Honestly, I don't know much about networking, and I feel like I'm shooting
in the dark. Some experienced advice would be helpful.