K I have finally learned how to do it. and had a hard time with it too, so I thought i'd just give something back to such a great forum aby writing this tutorial.
- To setup an AD HOC network you do not need a router or a wireless access point (WAP)
AD HOC Networks are useful when:
- You want to quickly copy files between two wireless computers, and no WAP is currently available.
- You only have two computers, and you don't want to spend the extra money on a router/WAP.
- You want to create a temporary network between two Wi-Fi-equipped game consoles for system-link gaming.
Follow these steps to enable ad hoc networking:
- Double click My Network Places and then click View Network Connections under Network Tasks on the left side of the screen.
- Right-click the Wireless Network Adapter icon and choose Properties.
- In the Wireless Network Connection Properties dialog box, click the Wireless Networks tab and then click Add.
- On the Association tab of the Wireless Network Properties dialog box, enter a network name (SSID) for the ad hoc network.
- Enable WEP encryption, deselect The Key is Provided for Me Automatically check box, and enter a WEP key in the two spaces provided. Your WEP key should be 10 or 26 characters long and use a combination of the numbers 0-9 and the letters A-F
- Select the This is a Computer-to-Computer (Ad Hoc) Network check box.
- Click OK. The ad hoc network now appears in the Preferred Networks list.
- Click OK to close the Wireless Network Connection Properties dialog box.
Repeat these steps on each computer to create the ad hoc connection.
Connecting to the ad hoc network
- Go to >> My Network Places.
- In the My Network Places window, click View Network Connections under Network Tasks on the left side of the screen.
- Double-click the Wireless Connection icon to open the Wireless Network Connection Status dialog box.
- Click View Wireless Networks.
- If you are currently connected to another network - such as a WAP-based infrastructure network - select it in the list of networks, and then click the Disconnect button.
- Select the ad hoc network and click Connect. The connection acquires a network address and then connects.
If the ad hoc network doesn't appear in your list of available networks, click Change Advanced Settings under Related Tasks on the left side of the screen. This should reveal any ad hoc networks that you have configured on the computer.
Tutorial Completed!

Hope I helped.
