This looks like it is fixed in the Hardy alpha 2 with the 2.6.24 kernel.
The newer b43 driver seems to work quite well.
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Broadcom bcm43xx Wireless driver regression in gutsy
https://bugs.launchpad.net/bugs/124159
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Bugs, which
Setting the rate down to 1M seems to work ok.
iwconfig eth1 rate 1M fixed
Strangely, I rebooted and it picked up the network fine. However, it has
picked up the network with a bit rate of 24 Mb/s, which it was never
able to before.
eth1 IEEE 802.11b/g ESSID:"zazz" Nickname:"Broadcom 4306"
I've upgraded to 7.10, and the bcm4306 driver no longer works properly.
It can scan network for the ssid, and with the speed set to 5.5M it can
authenticate, but fails when it tries to get an address from the router.
So this bug is definitely in 7.10.
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Broadcom bcm43xx Wireless driver regressio