I have the same problem, with the same chip.

I noticed that once i have booted up, iwconfig displays:

eth1      unassociated  ESSID:off/any  
          Mode:Managed  Channel=0  Access Point: Not-Associated   
          Bit Rate:0 kb/s   Tx-Power=20 dBm   Sensitivity=8/0  
          Retry limit:7   RTS thr:off   Fragment thr:off
          Power Management:off
          Link Quality:0  Signal level:0  Noise level:0
          Rx invalid nwid:0  Rx invalid crypt:0  Rx invalid frag:0
          Tx excessive retries:0  Invalid misc:0   Missed beacon:0

When I do a /etc/init.d/networking restart, iwconfig display the proper
settings of :

eth1      IEEE 802.11g  ESSID:"**MYSSID**"  
          Mode:Managed  Frequency:2.412 GHz  Access Point: 00:13:46:ED:42:76   
          Bit Rate:36 Mb/s   Tx-Power=20 dBm   Sensitivity=8/0  
          Retry limit:7   RTS thr:off   Fragment thr:off
          Power Management:off
          Link Quality=75/100  Signal level=-54 dBm  Noise level=-91 dBm
          Rx invalid nwid:0  Rx invalid crypt:1  Rx invalid frag:0
          Tx excessive retries:2  Invalid misc:0   Missed beacon:0

Afterwards evrething is OK. The process stated above by Quidam also
works.

-- 
Retyping network password needed after rebooting
https://bugs.launchpad.net/bugs/155805
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