Have you tried lsmod to see if the right driver got loaded?
not sure what to look for in the lsmod output..can't see anything there about 'net111' or 'wlan'

Just looked a bit closer on the Ndiswrapper site, and they say to use the W98 driver not the XP one so I will try again

Update - tried the W98 from release 2.0.1, but exactly same result as before

update 2 - tried the W98 from release 1.3.0, and now 'scan' reports my router

(the light is still off on the dongle - maybe it only comes on when transmitting ?).
update 3 - can't connect to AP however. Tried WindowsME driver from 1.3.0 with same result as last time.
Turned all security off, and tried both DHCP and static but no luck

update 4 - connected ! Turned off all encryption and using DHCP ok

. Now to see if I can get security to work ..
update 5 - connected using WEP

. I did need a reboot to make this work though. Also, WIFI Radar seems a bit flaky e.g. 'disconnect' doesn't always work.