Hi Christopher,
At the time I tested, it actually was the latest version available.

I have to add that ad-hoc mode is not supported by the default kernel.
sudo iwconfig wlan1 mode master:
Error for wireless request "Set Mode" (8B06) :
    SET failed on device wlan1 ; Invalid argument.

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https://bugs.launchpad.net/bugs/1319170

Title:
  8086:08b1 (rev 73) [HP ENVY 17-j188ez Notebook PC] Intel Wireless-AC
  7260 dropping connection and slow

Status in “linux” package in Ubuntu:
  Incomplete

Bug description:
  This is a combo WiFi/Bluetooth adapter with mini PCIe connector for
  mobile devices. While bluetooth seems to have no issues, the WiFi part
  does have on Ubuntu 14.04 LTS. Every now and then the speed may get
  slow during browsing the internet, sometimes the connection is lost.
  This may happen almost immediately or after up to 1 hour while using
  it. Often the slowness and drops are close to each other and it can
  even happen few times consecutively.

  Intel Corporation Wireless 7260 [8086:08b1] (rev 73)
  Subsystem: Intel Corporation Dual Band Wireless-AC 7260 [8086:4070]

  ProblemType: Bug
  DistroRelease: Ubuntu 14.04
  Package: linux-image-3.13.0-24-generic 3.13.0-24.47
  ProcVersionSignature: Ubuntu 3.13.0-24.47-generic 3.13.9
  Uname: Linux 3.13.0-24-generic x86_64
  ApportVersion: 2.14.1-0ubuntu3
  Architecture: amd64
  AudioDevicesInUse:
   USER        PID ACCESS COMMAND
   /dev/snd/controlC1:  lavinia_ron   2384 F.... pulseaudio
   /dev/snd/pcmC1D0p:   lavinia_ron   2384 F...m pulseaudio
   /dev/snd/controlC0:  lavinia_ron   2384 F.... pulseaudio
  CurrentDesktop: Unity
  Date: Tue May 13 21:58:01 2014
  EcryptfsInUse: Yes
  InstallationDate: Installed on 2014-04-26 (17 days ago)
  InstallationMedia: Ubuntu 14.04 LTS "Trusty Tahr" - Release amd64 (20140417)
  MachineType: Hewlett-Packard HP ENVY 17 Notebook PC
  ProcFB: 0 inteldrmfb
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-3.13.0-24-generic 
root=UUID=3f8ff85b-39c6-4be0-b514-cb00250a9f8e ro quiet splash vt.handoff=7
  RelatedPackageVersions:
   linux-restricted-modules-3.13.0-24-generic N/A
   linux-backports-modules-3.13.0-24-generic  N/A
   linux-firmware                             1.127.2
  SourcePackage: linux
  UpgradeStatus: No upgrade log present (probably fresh install)
  dmi.bios.date: 03/05/2014
  dmi.bios.vendor: Insyde
  dmi.bios.version: F.53
  dmi.board.asset.tag: Type2 - Board Asset Tag
  dmi.board.name: 1968
  dmi.board.vendor: Hewlett-Packard
  dmi.board.version: KBC Version 93.49
  dmi.chassis.asset.tag: 5CG414DSZL
  dmi.chassis.type: 10
  dmi.chassis.vendor: Hewlett-Packard
  dmi.chassis.version: Chassis Version
  dmi.modalias: 
dmi:bvnInsyde:bvrF.53:bd03/05/2014:svnHewlett-Packard:pnHPENVY17NotebookPC:pvr097E110000405E00000620100:rvnHewlett-Packard:rn1968:rvrKBCVersion93.49:cvnHewlett-Packard:ct10:cvrChassisVersion:
  dmi.product.name: HP ENVY 17 Notebook PC
  dmi.product.version: 097E110000405E00000620100
  dmi.sys.vendor: Hewlett-Packard

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