It's been a while since this post, but think the problem is that you don't have the Windows XP driver for the HomeFree USB Phone Line Adapter. Forget about the software that came on the cd -- it doesn't work on Windows XP. Windows XP has its own version of home networking. I have the HomeFree adapter card on 2 networked Windows XP PC's and one Windows 98. I had the HomeFree USB PhoneLine adapter working on my laptop with Windows XP. However, I lost the drivers when I had to reformat the hard drive and can't find the setup files that I used to install the driver. If you find the driver setup files, let me know. Otherwise, I'm very happy with the network and use it to share a cable connnection.