How to setup a wireless ad hoc connection?

I have a laptop with win XP Performance edition and one with win 7 ultimate and i set up a wireless ad hoc connection in the one with win 7. The other laptop finds the connection but when i try to connect it says Unable to connect.

ANyone know how to fix it?

 

First, what's the "Performance edition" of Win XP? Second, what service pack of XP are you running?

 

Its WIN XP with SP3 with these features removed for better performance

Applications:
Briefcase
ClipBook Viewer
Games
Internet Games
Pinball
Screensavers

Drivers:
Asynchronous Transfer Mode (ATM)
Display Adapters
Display Adapters (old)
IBM PS/2 TrackPoint
IBM ThinkPad
ISDN
Logitech WingMan
Microsoft SideWinder
Modems
Multifunctional
Portable Audio
Printers
Scanners
Serial Pen Tablet
Sony Jog Dial
Tape drives
Toshiba DVD decoder card

Hardware Support:
Brother Devices
Gravis Digital GamePort
Iomega Zip drive
Multi-port serial adapters
Ramdisk
Windows CE USB Host

Multimedia:
AOL ART Image Format Support
Images and Backgrounds
Media Center
Mouse Cursors
Movie Maker
Music Samples
Old CDPlayer and Sound Recorder
Speech Support
Tablet PC
Windows Media Player
Windows Media Player 6.4

Network:
Client for Netware Networks
Communication tools
Comtrol Test Terminal Program
Connection Manager
FrontPage Extensions
H323 MSP
Internet Connection Wizard
Internet Information Services (IIS)
IP Conferencing
MSN Explorer
Netmeeting
Network Diagnostic
Peer-to-Peer
Share Creation Wizard
Synchronization Manager
Vector Graphics Rendering (VML)
Web Folders
Windows Messenger

Operating System Options:
.NET Framework
Administrative Templates
Administrator VB scripts
Blaster/Nachi removal tool
Color Schemes
Desktop Cleanup Wizard
Document Templates
DR Watson
Extra Fonts
FAT to NTFS converter
File and Settings Wizard
File System Encryption
Help and Support
Input Method Editor
Manual Install and Upgrade
MS XML 2.0
Out of Box Experience (OOBE)
Private Character Editor
Remote Installation Services (RIS)
Search Assistant
Security Center
Service Pack Messages
Shell Media Handler
Symbolic Debugger (NTSD)
Tour

Services:
Error Reporting
Fax Service
Indexing Service
Messenger
Network DDE
Remote Registry
Removable Storage
Route Listening Service
RPC Locator
Telnet

Directories:
DOCS
SUPPORT
VALUEADD

 

Just a quick glance at all of the stuff you've removed from your pithed version of XP suggests that you've probably removed some of the functionality XP requires in order to set up an ad-hoc network.