Further testing discovered booting to Windows install disk, selecting repair and choose "Reset PC" also results in the adapter working properly, However, "Reset PC" also results in need to reinstall all apps. Then I proceeded to install all apps after fresh install but do no Windows updates at that time to be sure if updates was the cause of problems, and the problem was still present after all apps were installed.
This lead me to conclude the problem has to be due to 1 or more of the apps or 1 of the processes started by an app at Windows startup. By running msconfig all startup processes were stopped 1 by 1 to see if that could be the cause, but the problem persisted after all apps startup processes were disabled. This can only mean 1 of the apps is the root of problems and not just its startup processes, and I began uninstalling apps 1 at a time to determine the culprit. The problem persisted after Avast anti-virus was installed. Next Zonealarm was uninstalled, and bingo! Wireless was automatically detected by Windows, and all need be done was to enter pass phrase for the network to connect to the internet. Then Zonealarm was reinstalled, and everything works as it should. You'd think the wireless adapter makers would put something about this issue in their install instructions or that their tech support would at least be aware of it, but they seem to be oblivious to the issue and how to fix it.
To some this may seem like a lot of effort and that it may be easier to just do fresh install and start anew, but I needed to find the cause and fix so I could create a backup image that will work after it's restored when it's needed. Now I can restore an image, uninstall Zonealarm, get wireless setup, reinstall Zonealarm and be done. This requires much less time than doing fresh install or PC Reset and reinstall all apps and Windows update.