This issue is still present for Ubuntu 8.0.4.1 LTS (Hardy Heron). I have read 
elsewhere that NM requires a recent version of wireless extensions not 
supported by the current ACX driver (v0.3.36).
I am using a D-Link DWL-G520+ rev. A3, and after disabling NM, I am able to 
bring up wlan0 with dhclient connecting successfully to the AP.
Current Intrepid still includes the old stand-alone driver whereas the unstable 
mac80211 branch would probably settle this issue.

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ACX111/ACX100 based WLAN Card (DWL-G650+) wont connect to AP with wep key in 
edgy
https://bugs.launchpad.net/bugs/70523
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