Alright, I've pin pointed the problem, at least in my case. It turned
out a long forgotten wireless PCI card "WLG-1201" - TI 802.11g Wireless
PCI Card (chipset TNETW1130GVF) that was still in my computer was
seriously confusing NetworkManager. Removed and resolved the problem.

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memory leak in Network Manager Intrepid
https://bugs.launchpad.net/bugs/291074
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