I probably suffered more than most getting WHS to load. The last two thing i did to finally make it work was -
1. I used the driver package posted over at WGS and loaded ALL the drivers in the package into the slipstream.
2. I put it all together on a Vista 64bit machine. I read over at WGS that it only seemed to work on a Vista machine. Apparently this is true.
Also, you might want to let the client install find the server rather than looking for it in your router. Router clients lists are notoriously false. It's not at all unusual to have a computer fully connected and pulling an ip and yet not show up in the routers list of clients.
Looking at the pic I posted, do you agree that it looks like WHS installed to some degree, but perhaps I did the drivers incorrectly?