I'm using Ubuntu Intrepid and cannot create an ad-hoc network no matter
what.

$iwconfig
lo        no wireless extensions.

pan0      no wireless extensions.

eth1      IEEE 802.11  Nickname:""
          Access Point: Not-Associated   
          
eth0      no wireless extensions.

I already tried to install dhcp-server and firestarter firewall to set a
ad-hoc network manually in /etc/network/interfaces, however id didn't
work either. The wireless card broadcasts fine, it can be detected by
the other computer, but the other computer cannot establish the
connection.

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