I'm really at a loss to understand why you can't connect via the HH5 without first connecting to the SH2. Your setup is exactly the same as I have used which should and did work fine. The only thing I can suggest is to factory reset both devices and start again. Remember to turn off smart setup again on both devices afterwards.
Just one other point, the wireless channels should be different on the 2 devices to prevent any interference which may or may not be causing the problem.
Thanks for the reply. I have already spent a lot of time just to get to this stage Resetting both devices is really not an option for someone of limited knowledge and experience. I think I can live with my set up as it is. My thanks again for all the help you've given. me. You've put my mind at ease in that I appear to have done the right things in a stumbling sort of way.