<<< Do you know if this wireless adapter will work with windows 98se and usb1.1 connection? >>>
As far as I know, this wireless adapter requires Windows 2000 or XP. I have the WUSB54GS (the SpeedBooster version) and it definitely cannot be installed in Windows 98SE, I've just tried it. Does the PC in the same location as the router have to connect "wirelessly" or could it use an ethernet cable.
<<< My second query is ... will a pretty standard wireless router.. the one handed out by AOL.. have enough power to reach the laptop in the second house? >>>
Might be worth considering MIMO type hardware in view of the distance involved.