Comment 8 for bug 158017

#7: You're misreading the bug report. The problem isn't that the network fails to connect and asks for the _network_ password. It asks for the user's _login_ password to use gnome-keyring's default keyring to _look up_ the network password before trying to connect. That bug, which is the bug originally reported above, still exists in Karmic.

See bug #34898. gdm uses a pam module to unlock the default gnome-keyring keyring on login. gnome-screensaver should do the same thing when the user enters their password to unlock the screen. That would solve this bug.