Just posting to say I'm having the same issue. Occasionally network-
manager reports that a connection has been made, but no internet apps
work. Sometimes iconfig reports that it has an Access-Point, sometimes
not.

'netstat -nr' always gives a blank output except when I try to set up
the network with a static address, but the result is always the same -
no actual network activity.

I dual-boot with Windows and the card works fine (in fact I'm using
Windows now to post this :( ).

I've tried various solutions - disabling avahi and setting up DNS
myself, changing the Mode of the card etc - nothing works, and the
results are invariably the same: I can see the network, and supposedly
connect to it, but nothing past that - no useful network activity.

-- 
Ubuntu 7.10 Wireless Interface WEP password login problem with Asus WL-167G Usb 
Wlan Adapter
https://bugs.launchpad.net/bugs/147811
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