Public bug reported:

Until kernel version 3.2.0.26, ad-hoc mode worked just fine. Since the
automatic updates upgraded the kernel to 3.2.0.27 (and 3.2.0.28 and
3.2.0.29) I get:

~$ sudo iwconfig wlan0 mode ad-hoc
Error for wireless request "Set Mode" (8B06) :
SET failed on device wlan0 ; Device or resource busy.


Rebooting with the old kernel version (3.2.0.26) seems to fix the issue.

Some info:

~$ lspci |grep Network
03:00.0 Network controller: Intel Corporation Centrino Wireless-N 1030 (rev 34)

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: linux-image-3.2.0-29-generic 3.2.0-29.46
ProcVersionSignature: Ubuntu 3.2.0-29.46-generic 3.2.24
Uname: Linux 3.2.0-29-generic x86_64
AlsaVersion: Advanced Linux Sound Architecture Driver Version 1.0.24.
ApportVersion: 2.0.1-0ubuntu12
Architecture: amd64
ArecordDevices:
 **** List of CAPTURE Hardware Devices ****
 card 0: PCH [HDA Intel PCH], device 0: ALC665 Analog [ALC665 Analog]
   Subdevices: 1/1
   Subdevice #0: subdevice #0
AudioDevicesInUse:
 USER        PID ACCESS COMMAND
 /dev/snd/controlC0:  emilio     2087 F.... pulseaudio
Card0.Amixer.info:
 Card hw:0 'PCH'/'HDA Intel PCH at 0xf1c00000 irq 54'
   Mixer name   : 'Intel CougarPoint HDMI'
   Components   : 'HDA:10ec0665,1028050e,00100003 
HDA:80862805,80860101,00100000'
   Controls      : 32
   Simple ctrls  : 14
Date: Wed Aug 29 15:33:06 2012
HibernationDevice: RESUME=UUID=e9188b50-cbfb-4704-8cb7-d3f664b77691
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Release amd64 
(20120425)
MachineType: Dell Inc. Dell System XPS L502X
ProcFB: 0 inteldrmfb
ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.2.0-29-generic 
root=UUID=72a265a4-6445-4626-934e-5143ea9d941d ro quiet splash pcie_aspm=force 
vt.handoff=7
RelatedPackageVersions:
 linux-restricted-modules-3.2.0-29-generic N/A
 linux-backports-modules-3.2.0-29-generic  N/A
 linux-firmware                            1.79
SourcePackage: linux
StagingDrivers: mei
UpgradeStatus: No upgrade log present (probably fresh install)
UserAsoundrc:
 pcm.btheadset {
         type bluetooth
         device 00:1E:7C:01:CB:86
         profile “auto”
 }
dmi.bios.date: 03/25/2011
dmi.bios.vendor: Dell Inc.
dmi.bios.version: A04
dmi.board.name: 0NJT03
dmi.board.vendor: Dell Inc.
dmi.chassis.type: 8
dmi.chassis.vendor: Dell Inc.
dmi.chassis.version: 0.1
dmi.modalias: 
dmi:bvnDellInc.:bvrA04:bd03/25/2011:svnDellInc.:pnDellSystemXPSL502X:pvr:rvnDellInc.:rn0NJT03:rvr:cvnDellInc.:ct8:cvr0.1:
dmi.product.name: Dell System XPS L502X
dmi.sys.vendor: Dell Inc.

** Affects: linux (Ubuntu)
     Importance: Undecided
         Status: New


** Tags: amd64 apport-bug precise running-unity staging

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https://bugs.launchpad.net/bugs/1043323

Title:
  Update to Kernels newer than 3.2.0-26 breaks WiFi Ad-Hoc mode

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