I checked and this is no longer the case in Ubuntu 12.04. If this happens to you in Ubuntu 12.04, please set status back to New and provide more details.
** Changed in: network-manager (Ubuntu) Status: New => Fix Released -- You received this bug notification because you are a member of Desktop Packages, which is subscribed to network-manager in Ubuntu. https://bugs.launchpad.net/bugs/558374 Title: Network manager requires password for creating unprotected ad-hoc network Status in “network-manager” package in Ubuntu: Fix Released Bug description: Binary package hint: network-manager You can't create a new unprotected wireless network normally. Picking security: None leaves the "Create" button ghosted out. Steps to reproduce: Click the network-manager applet. Pick Create New Wireless Network... Leave Connection: New... Type in any Network Name: Change Wireless Security to None. Ponder what to do next as all other options vanished and "Create" is still ghosted out. Workaround: Pick Wireless Security: WEP 40/128-bit Key Type in any password (say, 10 0's) change Wireless Security to None Click "Create". Network Manager Applet 0.8, Ubuntu 10.04 Netbook Remix To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/network-manager/+bug/558374/+subscriptions -- Mailing list: https://launchpad.net/~desktop-packages Post to : desktop-packages@lists.launchpad.net Unsubscribe : https://launchpad.net/~desktop-packages More help : https://help.launchpad.net/ListHelp