After spending 3 days chasing this the fix was simple;

I *don't* use network manager. It's one of the things I uninstall as
soon as I do any system build. To compensate for this I keep a couple of
Gnome 'Network Monitors' on a the lower panel. One for LAN, one for
WLAN.

I deleted the WLAN monitor and recreated it and it all worked again -
flawlessly. Something in that upgrade list above broke the wireless via
this little gui monitor the other night. Tis an oddball but hopefully
this will help someone else out.

Only thing that does *not* work is the WIRELESS LED on the laptop
(despite ATH5K appearing to have a LED module.) It stays amber whatever
- which is about as much use as a one legged man at an a*s kicking
competition - but hey, it never has worked with UB 8.10, so I'm not
going to cry.

SOLVED

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ath5k stops working
https://bugs.launchpad.net/bugs/336199
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