What does it mean by "there is IP address conflict with another system on network"?

It usually means that a device on your network is using the same IP address as another device. If you are using DHCP (Dynamic IP) make sure that every device is set to get the IP address automatcially from your router. This way the router will determine which IP address to give each device. If a device is trying to force use a specific address (Static IP) that the router has already given out then you will usually see this message.

Yes it could mean that someone else has connected to your router and is using a defined static IP address that your router was trying to give to one of your devices. Most router have a web interface you can connect to and check what devices are connected to the router. If you see one you dont recognize you can block it.

By default all the machine connected in a network/Internet have a unique IP. Sometimes it is assigned mannualy by a Network admin or it is assigned to Computer dynamically from a DHCP server when the computer boots up. An IP conflict means someone tried to give an IP manually which is already used by another computer or the DHCP server (either a computer server or a Router) tried to assign an IP which was already assigned. If the IP in your network is assigned manually, contact your admin. If its DHCP restart your machine or type 'ipconfig /release' (to release the current IP and then 'ipconfig /renew' (to get a new IP) in a command prompt.

It means that you haven't set enough spaces to allow more computers to run it with more different IPs. It also happens when you set the IP address manually and then another computer has that IP address assigned automatically but your computer is off then. But when you turn it on, it would conflict as your IP address is set manually and won't change. It can also mean that your neighbor is using your network. I suggest putting a WEP protection on it soon. You might also be open to file sharing if you didn't stop that already. Log in to your router and set it up with a simple wizard provided to you.

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RE:

What does it mean by "there is IP address conflict with another system on network"?

I have 4 other computers using the same network wirelessly. Never had this messae until recently. Does it mean my neighbor is using my network?

Probably. Some where you have gotten assigned the same IP address. Check each computer by going to the dos command and type in ipconfig. This will return the IP address of each computer. If all your computers are different then you need to readdress you wireless security.

You need to check the IP's of all machines on your network and ensure that none of them have the same IP address. You may have another person using your IP address but you can double check that.

It might. And in any case, wireless networks should always be secured with encryption. In general, it means that two machines on the network have the same IP address, and that, for obvious reasons, is a no-no.

It's possible. Check the IP addresses of all your other computers. If they're all different, some unwanted is on your network ... Time to turn on security!

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means you have the same ip as someone else on the network, either change it manually thourhg control panel-> network connections-> Tcp/IP Properties or if its a controlled network, ie: work, you'll have to goto your techies to set you a new ip.