Thank you for replying.
Here's the syslog extract as the complete syslog would also include the manual connection attempt:

Mar 28 21:12:10 dragasacer dhcdbd: message_handler: message handler not found under /com/redhat/dhcp/wlan0 for sub-path wlan0.dbus.get.reason
Mar 28 21:12:10 dragasacer NetworkManager: <debug> [1206735130.883083] nm_device_802_11_wireless_get_activation_ap(): Forcing AP 'dragas_wl'
Mar 28 21:12:10 dragasacer NetworkManager: <info>  User Switch: /org/freedesktop/NetworkManager/Devices/wlan0 / dragas_wl
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Deactivating device wlan0.
Mar 28 21:12:10 dragasacer NetworkManager: <WARN>  nm_device_802_11_wireless_set_essid(): error setting ESSID to '' for device wlan0: Invalid argument
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Device wlan0 activation scheduled...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) started...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) scheduled...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) started...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) scheduled...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) complete.
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) starting...
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0/wireless): access point 'dragas_wl' is encrypted, but NO valid key exists.  New key needed.
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) New wireless user key requested for network 'dragas_wl'.
Mar 28 21:12:10 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) complete.
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) New wireless user key for network 'dragas_wl' received.
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) scheduled...
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) started...
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) scheduled...
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) complete.
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) starting...
Mar 28 21:12:25 dragasacer NetworkManager: <info>  Activation (wlan0/wireless): access point 'dragas_wl' is encrypted, and a key exists.  No new key needed.
Mar 28 21:12:26 dragasacer NetworkManager: <info>  retry to connect to global supplicant socket (try=1)
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'INTERFACE_ADD wlan0^I^Iwext^I/var/run/wpa_supplicant0^I'
Mar 28 21:12:27 dragasacer kernel: [   97.625862] ADDRCONF(NETDEV_CHANGE): wlan0: link becomes ready
Mar 28 21:12:27 dragasacer kernel: [   97.676506] NET: Registered protocol family 17
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'AP_SCAN 1'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'ADD_NETWORK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was '0'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'SET_NETWORK 0 ssid 6472616761735f776c'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'SET_NETWORK 0 key_mgmt NONE'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'SET_NETWORK 0 wep_key0 <key>'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'SET_NETWORK 0 wep_tx_keyidx 0'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: sending command 'ENABLE_NETWORK 0'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  SUP: response was 'OK'
Mar 28 21:12:27 dragasacer NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) complete.
Mar 28 21:12:29 dragasacer avahi-daemon[5367]: Registering new address record for fe80::21e:4cff:fe69:3fe2 on wlan0.*.
Mar 28 21:12:38 dragasacer kernel: [   98.983425] wlan0: no IPv6 routers present

Looking at this, it may seem the connection should be established but it's not up.
An iwconfig says the essid is off and it's not associated, and I haven't any ip address