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It's unlikely that if you are initially setting up the wireless on the laptop, whilst sitting close to the router that interference would completely block a signal. Yes you may have a problem if you then move away from the router's location. The best place for a router is high, rather than low, so if you can get it on a shelf that would be better.
As for getting the connection set up, try initially without any security enabled. See if you get that runing and then modify it to add the security layers.