Please read what Tony Espy has written about the differences of ad-hoc
and access point networks once again.

You can't "create a network with the gnome panel applet" to connect to an 
access point. That doesn't work. Never.
Please see http://en.wikipedia.org/wiki/Wireless_LAN#Types_of_wireless_LANs for 
more informations.
In short words: "Create network" is when you want to connect 2 computers 
without an access point.

(connecting 2 computers with wpa does not work in ubuntu, actually but
that's another bug: https://bugs.launchpad.net/ubuntu/+source/network-
manager/+bug/322902 )

Can you connect with Ubuntu 9.04 at your home to your access point?
(maybe try livecd)

** Changed in: network-manager-applet (Ubuntu)
       Status: New => Incomplete

-- 
can't connect to a WPA encrypted network
https://bugs.launchpad.net/bugs/406726
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