This was probably already mentioned earlier, but what I have noticed is that my wireless works just fine with DHCP and WEP/WPA networks, but if the nm-applet (which is called network-manager-gnome in Ubuntu) is installed knetworkmanager doesn't work, but nm-applet does. If uninstalling nm-applet doesn't fix your problem, reinstall it and use it instead of knetworkmanager for now. I have found it generally better at supporting the NetworkManager core. I'm sure this will be fixed though, but probably for the next release of Ubuntu.
This was probably already mentioned earlier, but what I have noticed is that my wireless works just fine with DHCP and WEP/WPA networks, but if the nm-applet (which is called network- manager- gnome in Ubuntu) is installed knetworkmanager doesn't work, but nm-applet does. If uninstalling nm-applet doesn't fix your problem, reinstall it and use it instead of knetworkmanager for now. I have found it generally better at supporting the NetworkManager core. I'm sure this will be fixed though, but probably for the next release of Ubuntu.