Ok, let's backup. Do the following and it WILL work. Did it last night, actually.
- Connect the camera to your wireless router via the Ethernet port.
- Look into your router and jot down the IP address assigned to the camera.
- Enter the IP address in your browser address bar/url. You will be taken to the camera's web configuration page. You should see live video there.
- Disconnect the Ethernet cable now. The camera should continue to work. There may be a lag but it will show.
That's about it. Don't complicate the matter by messing with ad hoc network, wifi-setting, SSID, channel etc. etc. None of them are necessary to get the camera to work.