This might be a key ring issue.  I can enable the wireless from the top
bar; in doing so it asks me to create a keyring password.  If I then try
to use system / preferences / network connections to edit the network,
it prompts me if I want to let the application use the keyring.  If I allow
it, then I can actually get a non-greyed-out apply button in the edit
dialog for the wireless network connection.

I can then check the check box for Allow all users and click apply. 
However, that immediately disconnects the wireless network!

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can't enable wireless network in karmic beta livecd
https://bugs.launchpad.net/bugs/445359
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