I have the exact same issue.
Both in KDE and in unity if I stop the service "network-manager" and connect to 
the access point with iwconfig I can connect without any problem. 

Posting the workaraound for people looking for one:

sudo service network-manager stop
sudo iwconfig wlan0 essid 'name of your network'
if you have wep enabled:
sudo iwconfig wlan0 key 'your WEP key'
sudo dhclient

** Package changed: ubuntu => network-manager (Ubuntu)

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You received this bug notification because you are a member of Desktop
Packages, which is subscribed to network-manager in Ubuntu.
https://bugs.launchpad.net/bugs/1037865

Title:
  wireless shows connected but is not .

Status in “network-manager” package in Ubuntu:
  Confirmed

Bug description:
  ubuntu quantal with the 3.5.0-x kernel . network-manager shows my wireless 
connected when it is not , disconnects and reconnects randomly . My wireless is 
realtek rtl8185 which has been supported  by a built in kernel module for a 
long time .
  network and other problems have persisted all the way through the 3.5 series 
kernels . wireless does work on the daily live cds but not consistantly on the 
installs from the same .

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