I have the same problem with iwl4965, driver version 1.2.25 and kernel
2.6.24-19 generic.

There has been a bug reported recently at
http://intellinuxwireless.org/bugzilla/show_bug.cgi?id=1716. They say
the problem is solved for 2.6.27.

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ad-hoc networks don't work with Intel wireless
https://bugs.launchpad.net/bugs/75358
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