I have the same chipset on a USB dongle.
Usualy, waiting for the X session before plugin the device does the trick. If I 
plug it too soon, I have to do manually
- iwconfig to enter the wep key
- dhclient on the wlan interface
If I wait for the X session, the wlan connection is started automatically

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wlan zd1201 not started by network manager
https://bugs.launchpad.net/bugs/115812
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