Same problem here; have my /etc/network/interfaces setup properly, but... Link 
not ready. If I do iwlist scan; it doesn't support scanning. When I do: 
iwconfig eth1 essid myessid, it becomes ready, and was able to connect, but at 
the moment, dhclient times out.
When I do: sudo iwconfig eth1 channel 11, it gives me:
Error for wireless request "Set Frequency" (8B04) :
    SET failed on device eth1 ; Operation not permitted.
Hope this helps; if I can do more debugging ( read: spell out what you want me 
to do:-) please say so.

peter

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Unable to connect to Internet - "link is not ready"
https://launchpad.net/bugs/63664

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