So I figured out the problem
When I originally connected I first installed Windows Mobile Device center on my computer, and that allowed me to use the internet. Since then I haven't connected to that computer, and just allowed Vista to automatically install the device. Apparently that does not allow a connection. Once I installed Mobile Center on the computer it worked fine.
I did figure out the setting that I was referring to. Under Settings>Connections>USB to PC under Active Sync there is a check box that says Enable advanced network functionality that I had unchecked. That wasn't the cause of my problem, but that is what I originally thought it might be (not sure what exactly that box does actually).
Bored - By wmwifi are you referring to the WiFi built in? If so I have no icon that says wifi to usb, just a USB to PC icon and a separate WiFi icon. But thanks for your help!