You may have a Service for the Network icon that is not started or disabled causing it to not report the network connection accurately. Check these services to see they are set as Started and what is next to the service below. These are the default settings.
To get a screen capture:
1. use print screen button
2. paste into MS Paint
3. save as .jpeg
4. upload to flickr or similar and link to your thread/post.
I am having a similar problem. I recently moved from WEP to WPA2/PSK/AES however no "network locations" are showing up when I connect wirelessly. The connection dialog has conflicting information.