I have precisely the same problem (including Caps Lock flashing) on my
Toshiba Satellite L355 (x86_64 architecture) using the built-in Wireless
WiFi Link 5100. Again, wired Internet works flawlessly.

The difference is that I've been using Jaunty for a while with no
problems. So kernels 2.6.28-11 and 2.6.28-15 worked fine. My problem
apears to be related to the 2.6.31 kernel in Karmic.

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When using my laptop wifi card to connect to a WPA2 network, the kernel crashes
https://bugs.launchpad.net/bugs/353062
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