Total Wifi/PS3 set up fail . . . please read for more details.?

I am very tired so bear with me.

I tried to hook our new ps3 to our wifi. It wouldnt work- the long password didnt even seem to be the same length after i'd hit enter on the ps3. I tried the password for the homegroup on the laptop, then from the point of origin (i.e. where it all is hooked up at with our broadband and wifi router, our main computer). I tried changing the passwords. It never worked.

Then I tried looking up the password from the router website. I decided to shorten it also because it seemed the ps3 wasnt acknowledging more than 8 characters anyway. This was a mistake.

Before my main computer showed two connections under the network and sharing center. The broadband connection and the wifi connection. It would show to be connected to both. Now it shows only one, the broadband. For some reason it's no longer acknowledging it is the wifi host, though our wifi connection with it's correct name is still showing up on the wireless connection list. When i try to connect it just says error and troubleshoot does nothing. Since this wifi connection is just apparently floating out in space the laptop is now not connecting to the internet anymore.

So my question is:

What do I need to do to make my computer correctly host the wifi signal again so the laptop can connect? (restarting and reset did nothing. I cant delete the network connection either )

What was I doing wrong with the playstation 3 set up? Is the homegroup pasword not what will allow it onto my wifi signal?

Im on windows 7, the wifi router is a netgear . . .