I think I've having the same problem. I'm using a Thinkpad T42p with
Atheros AR5212 wireless card. All the access points within range show up
on the menu, but when I select the access point to connect, it hangs on
"waiting for wireless key".

when I type iwconfig in the terminal repeatedly, my ath0 seems to be
swapping between 5Ghz and 2.4Ghz frequencies, and looping through
802.11a to 802.11g and back again.

This only happened when I upgraded from Gutsy to Hardy.

I'm using WPA2 on my access point.

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network-manager hangs on "waiting for network key"
https://bugs.launchpad.net/bugs/229395
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