Ad-hoc setup on the first computer (1)
1. Go to Control Panel and open Network Connections folder. If you
have installed your Wi-Fi adapter correctly, you
will find a Wireless Network Connection icon on the right pane
under LAN or High-Speed Internet.

Figure: starting a connection from Wireless Network Connection icon.
2. Locate the Wireless Network Connection icon on the
right pane. Right-click on it and click Properties to open
Wireless Network Connection properties window.
3. On the Wireless Networks tab of the Wireless Network
Connection properties window, click Add under Preferred networks.
The Wireless Networks tab only appears if your wireless network
adapter supports Windows XP's Wireless Zero Configuration (WZC)
service
and you have enabled it according to your adapter manufacturer
directions or if it is possible simply uninstall the utility
(software) that comes with your adapter but do not remove the
driver.

Figure: Creating a wireless (Wi-Fi) ad hoc (peer-to-peer) network
via Wireless Network Connection properties window.
4. On the Association tab, type the name of your ad-hoc wireless network in Network name (SSID).

Figure: input the wireless ad hoc network name (SSID), authentication, and encryption
on the Association tab of Wireless network properties window.
5. Check "This is a computer-to-computer (ad hoc) network" and clear "The key is provided for me automatically"
if you want to input your network key manually.
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