When you say it has a router in it, you mean a receiver and you are trying to connect to the other pc without the means of an external router (network).
You need to set up the connection using windows wireless network wizard as you seem to be trying to connect 'adhoc', which is one pc to another.
It's too long a process to type here so use the wizard
also you need to check that both are on the same workgroup setting, this is found by right clicking my computer and then properties and computer name, as if they are'nt they cannot see each other.
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