WPA Encryption on with DSL-G604T and DWL-G122

I bought the DLink DSL-904 bundle which includes the DSL-G604T wireless Router/ADSL Modem and the DWL-G122 USB Wireless PC adapter.

This was was really easy to get up and running and basically configure. I've set up WPA encryption between the Router and my PC but also have a Laptop with built-in WiFi.

Now that I've set up WPA I can no longer pick up an IP address with my Laptop, even with WPA enabled and the same Key passphrase in use. This worked fine prior to using encryption.

Is this the way it is with WPA or is there something I can do to get my Laptop talking with my Router and Desktop machine over WiFi again? I've got DHCP set up to allocate a static address and have restricted this by MAC Address.

Cheers for any help you may be able to give.

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