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@Words of Wisdom
Some people don't have wireless routers and it's cheaper to spend $35 on the dongle than $40 on a router. DUH!

The dongle doesn't use WEP.

More than likely it's a firewall related issue. Try disabling your firewall, and anti-virus, and see if it works. If it does, enable one at a time and see which one was blocking it and configure it accordingly.

Then again, I had this issue at the inlaws when I brought the Wii and my Dongle over. Where NOTHING I did worked, so who knows.