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generally speaking Windows XP, adsl wireless works very well. So i would not e too worried about using the wireless on both machines.
Have you typed the ip addresses in yourself or are they dynamically generated by one of the computers?
Also i have got the same situation set up but i have specified a WEP key, try a short one for starters.
Does the software that came with the USB cards have a site monitor etc?
Are you running Windows XP Home or Professional?
Early days with Win98, i had to add the netbios protocol, not just tcp/ip to get them to talk.
All that aside. I assume you are getting nothing when you ping?
Also do you currently have adsl and if yes what sort of adsl modem?
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