Sorry, been away from the computer for a bit. The red X on your local conn is normal, since the WiFi is your connection. It sounds like you are connecting but the signal strength may be a bit low. How far are you from the WiFi Antennae? What type of walls are between you and that point? When I asked you to check the support tab on the status window, it would have told you how the WiFi was addressed, (either DHCP or if it was manually configured).
Click on start, Accessories, and then Command prompt. Type IPCONFIG and then press enter. Write back what your IP address is and the Gateway address. Whatever the gateway address is, type Ping followed by a space and then that address. It will try to connect 4 times in this routine and give you stats afterwards. If you can get to the gateway, you should be able to get to the internet, but if it drops any of the packets, well, you may need an antennae boost.
WiFi is affected by all kinds of different things. Make sure the antennae connections are tight and check what the system says your signal strength is. I'm signing off now as it's getting late here, but if your WiFi did work for awhile and is still saying its connected, I'd look at the signal strength. If its less than 45%, you may not be able to get out, even if it says its connected.
Will check back when the sun rises. Good luck