I've just updated to latest network manager and it *WORKS*. I'm not
being asked for the passphrase
ii network-manager
0.7~~svn20080928t225540+eni0-0ubuntu2 network management framework daemon
ii network-manager-gnome 0.7~~svn20080927t101113-0ubuntu1
network management framework (GNOME frontend)
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wireless password is not being saved (intrepid)
https://bugs.launchpad.net/bugs/271097
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