WLAN showing up in Preferred Networks but not Active Networks--WHY

I've set up a WLAN using a Proxim 600AP and have turned "off" the SSID broadcasting for security purposes. The security settings are as follows: SSID turned off and WPA-PSK w/TKIP encryption only. A user wanted to access this WLAN using his XP pro, built in Wireless g, Compaq r3000 paresario -laptop. I could not find a Client Manager Utility anywhere on his laptop so, decided to use the Wireless Zero Config utility for XP. Made sure to download the latest WPA updates for XP from Microsoft website. When I view the Preferred and Available wireless networks, my "Locked down" WLAN shows up only under Preferred w/a large red X next to it. I cannot move my WLAN up further to the Available networks. Does anyone know WHY?????
Let me also say that I was able to jump on a non-encrypted wireless network that was bleeding over into my WLAN. To sum up...yes the wireless card WORKS on the user's laptop and is able to access other networks.....just not my WLAN. Does anyone have any suggestions????