This is a known problem with NetworkManager 0.7.x and earlier...
The applet converts the key/passphrase input by the user to an internal
representation. It's a poor user experience, and has been fixed in NM
0.8 ( included in Karmic ).
I'm marking this as WontFix.
If you still have troubles with connecting, please enter a new separate
bug.
** Changed in: network-manager (Ubuntu)
Status: New => Won't Fix
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Corrupted password
https://bugs.launchpad.net/bugs/442808
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