HuaweiE220: wireless device does not exist or unavailable: Dell Vostro 1310

I have problem with huawei E220 3g modem connecting to my brand new Vostro 1310 laptop. From Mobile Connect software, once it says "initializing wireless device", wait for 20-30 seconds, a pop up window says "wireless device does not exist or unavailable". I look through the forum for similar errors and have been trying the following w/o success:

1. Uninstall the software (mobile connect), delete huawei technology folder, restart the laptop and reinstall the software - the problem persists

2. Check com port used for 3G modem (in my Vostro is assigned to COM5) via device manager. That COM port is available. I even try change the COM to other available COM port, and that does not help - the problem persists

3. Uninstall Roxio Creator software and Jet Audio software (those comes w/ the laptop) - the problem persists.

The laptop is running Win XP Pro SP2.

The same modem is working fine in my old Fujitsu laptop (win xp home sp2). What else can I try to fix this problem? Please help. Thank you.