Are you using the "use Windows to configure my wireless network settings" or
are you using software provided by your card manufacturer? I'm running XP
SP2 and use WPA -PSK to connect to me wireless connection.
If you go into Network Connection, double click your wireless network
connection, Click Change advanced settings, click wireless networks, is there
a tick in the "use Windows to configure my wireless network settings?"
If there is, go into the properties of your preferred network, what do you
see under Network Authentication?