I also have this issue and I am using the iwl4965 driver as well.  I can get my 
wireless connection to work through Network Manager, but I need to mess around 
with it each time I boot the machine.  This is definitely not a solution but 
hopefully it can help in the diagnostics of the bug.  Here are the steps I take:
Left click the NM icon and select Connect to Other Wireless Network.  Enter all 
the information for my WPA network and hit okay.  At this point, NM shows that 
I am connected to my network, but it will not give me an IP address through 
dhcp.  I then left click on NM and select manual configurations.  Here I choose 
to set a static ip address since dhcp will not work.  After setting a static ip 
address, I am able to use my network again.  Every time I reboot, I have to go 
through these steps again.

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[Intrepid] iwl3945 + iwl4965 -- network-manager will not connect to a WPA 
Enterprise network (disassociating by local choice (reason=3) )
https://bugs.launchpad.net/bugs/272185
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