I can confirm this. It happens since ubuntu11. I also have a ipw2200. Network is unusable.

Sep 11 17:42:34 localhost NetworkManager: <info>  eth1: Device is fully-supported using driver 'ipw2200'. 
Sep 11 17:42:34 localhost NetworkManager: <info>  nm_device_init(): waiting for device's worker thread to start 
Sep 11 17:42:34 localhost NetworkManager: <info>  nm_device_init(): device's worker thread started, continuing. 
Sep 11 17:42:34 localhost NetworkManager: <info>  Now managing wireless (802.11) device 'eth1'. 
Sep 11 17:42:34 localhost NetworkManager: <info>  Deactivating device eth1. 
Sep 11 17:42:34 localhost NetworkManager: <info>  eth0: Device is fully-supported using driver 'tg3'. 
Sep 11 17:42:34 localhost NetworkManager: <info>  nm_device_init(): waiting for device's worker thread to start 
Sep 11 17:42:34 localhost NetworkManager: <info>  nm_device_init(): device's worker thread started, continuing. 
Sep 11 17:42:34 localhost NetworkManager: <info>  Now managing wired Ethernet (802.3) device 'eth0'. 
Sep 11 17:42:34 localhost NetworkManager: <info>  Deactivating device eth0. 
Sep 11 17:42:34 localhost NetworkManager: <info>  Device list recreated successfully. 
Sep 11 17:42:44 localhost NetworkManager: <info>  SWITCH: no current connection, found better connection 'eth1'. 
Sep 11 17:42:44 localhost NetworkManager: <info>  Will activate connection 'eth1/blubb2'. 
Sep 11 17:42:44 localhost NetworkManager: <info>  Device eth1 activation scheduled... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) started... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) scheduled... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) started... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) scheduled... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) complete. 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) starting... 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1/wireless): access point 'blubb2' is encrypted, but NO valid key exists.  New key needed. 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) New wireless user key requested for network 'blubb2'. 
Sep 11 17:42:44 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) complete. 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) New wireless user key for network 'blubb2' received. 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) scheduled... 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) started... 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) scheduled... 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) Stage 1 of 5 (Device Prepare) complete. 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) starting... 
Sep 11 17:42:47 localhost NetworkManager: <info>  Activation (eth1/wireless): access point 'blubb2' is encrypted, and a key exists.  No new key needed. 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (0/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (1/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (2/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (3/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (4/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (5/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (6/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (7/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (8/10). 
Sep 11 17:42:49 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (9/10). 
Sep 11 17:42:50 localhost NetworkManager: <info>  supplicant_interface_init() - connect to global ctrl socket (10/10). 
Sep 11 17:42:50 localhost NetworkManager: <info>  SUP: sending command 'INTERFACE_ADD eth1^I^Iwext^I/var/run/wpa_supplicant3^I' 
Sep 11 17:42:50 localhost NetworkManager: <info>  SUP: response was 'OK' 
Sep 11 17:42:50 localhost NetworkManager: <info>  Error opening control interface to supplicant. 
Sep 11 17:42:50 localhost NetworkManager: <WARN>  real_act_stage2_config(): Activation (eth1/wireless): couldn't connect to the supplicant. 
Sep 11 17:42:50 localhost NetworkManager: <info>  Activation (eth1) failure scheduled... 
Sep 11 17:42:50 localhost NetworkManager: <info>  Activation (eth1) Stage 2 of 5 (Device Configure) complete. 
Sep 11 17:42:50 localhost NetworkManager: <info>  Activation (eth1) failed for access point (blubb2) 
Sep 11 17:42:50 localhost NetworkManager: <info>  Activation (eth1) failed. 
Sep 11 17:42:50 localhost NetworkManager: <info>  Deactivating device eth1. 
Sep 11 17:42:50 localhost NetworkManager: <WARN>  nm_signal_handler(): Caught signal 11.  Generating backtrace... 
Sep 11 17:42:50 localhost NetworkManager: ******************* START **********************************
Sep 11 17:42:54 localhost NetworkManager: (no debugging symbols found)
Sep 11 17:42:54 localhost NetworkManager: Using host libthread_db library "/lib/tls/i686/cmov/libthread_db.so.1".
Sep 11 17:42:54 localhost NetworkManager: (no debugging symbols found)
Sep 11 17:42:54 localhost NetworkManager: [Thread debugging using libthread_db enabled]
Sep 11 17:42:54 localhost NetworkManager: [New Thread -1212663360 (LWP 4871)]
Sep 11 17:42:54 localhost NetworkManager: [New Thread -1229452400 (LWP 6316)]
Sep 11 17:42:54 localhost NetworkManager: [New Thread -1221059696 (LWP 6235)]
Sep 11 17:42:54 localhost NetworkManager: 212666992 (LWP 6232)]
Sep 11 17:42:54 localhost NetworkManager: (no debugging symbols found)
Sep 11 17:42:54 localhost NetworkManager: 0xffffe410 in ?? ()
Sep 11 17:42:54 localhost NetworkManager: ******************* END **********************************