In a few simple steps you can bypass Windows Validation, and the resulting "Limited or No Connectivity" issue on an encrypted connection.
In the next window click on the "Authentication" tab, Make sure "Enable IEEE 802.1x...." checkbox is UN-Checked, the rest of this window should be greyed out.
I am not sure what to do next as there seems to be something in the computer that is not set up correctly. Then it asks for my Network authetication and the options are Open, shared, or WPA. I went ahead and used no encryption for my router and then the D Link USB adapter was able to connect.
Then it asks for encryption Key and the options are WEP or disabled. I have never seen this before on any of my computers. I am yet to try WEP Encryption with my router to see if that works.
Secondly you can change the SSID to what you want, and the channel to 1 or 11.