WM causes PC wireless problem

I have a HTC Diamond 2 running Windows Mobile WM6.5 which is working perfectly. I also have a Laptop PC which is working perfectly. However, whenever I plug in the WM device to the PC to sync via ActiveSync, my Laptop PC’s wireless connection will drop. All other functions on both device work perfectly bar from this issue. Even when I have disconnected the WM device from the Laptop PC, the wireless connection on the Laptop will not work. It keeps searching, establishing network, then drops. Only solution thus far that works is to reboot the Laptop PC without the WM device connected. Any know conflicts between WM6.5 and Windows XP or any other issues with Active Sync? Any thoughts welcome. Many thanks