Hmm, that seems strange. I would suggest there might be a problem with the router. as that USB dongle is a god one and works well. You did install the drivers for it I assume?
For long distance - EG: upstairs, use 2.4GHz, as the signal goes about twice as far as 5GHz. Make sure the card is set up correctly for that.
Did the USB dongle work at all? IE: Did you install the drivers and see any networks pop up? You will need to remove your old card to prevent any clashes, as it may just default to this and not the USB dongle.
I asked you for the motherboard model and you pasted the system summary detail in a post. Sadly that though has since disappeared from the thread. I recall your on W7 but can't recall the MB and case type. Please just supply those and we can direct you to a suitable card via a link.