The "1394 Connection" is *FIREWIRE* and nothing to do with your internet connection. Unless disabled, it will always show as "Connected".
In the Network Connections folder, it is the "Wireless Network Connection" that must connect to your router wirelessly.
I had been using XP SP3 wirelessly for many months without a problem. However, I recently reinstalled Windows in that PC and if I now install SP3 again, I cannot connect wirelessly - it just sticks at "Acquiring network address".