After update 1.74 the drone can be placed in AdHoc or Access Point mode. From your description it sounds like it might be in AdHoc mode. Android can't normally connect to an AdHoc network. So, you may want to try switching the drone to Access Point mode.
From the support page for Android at: http://ardrone.parrot.com/parrot-ar-dro … rt/android
- You have the option of switching from ad-hoc mode to access-point mode and vice versa. To do so, press and hold the Unpair button for 5 seconds. The flashing motor LEDs indicate that a mode switch has taken place. The LEDs flash red when access-point mode is switched to ad-hoc mode. The LEDs flash green when ad-hoc mode is switched to access-point mode.
The other thing to check is to make sure you are actually at 1.74 on the Drone.
1. Turn on the Drone
2. Connect to the Drone with your PC (it will appear as a wireless network)
3. In the browser connect to: ftp://192.168.1.1:5551
4. Open the version.txt and make sure it's 1.74
If it isn't then go to http://ardrone.parrot.com/parrot-ar-dro … ort/update and try the update again.