Are you using an ASCII passphrase or a HEX key for WEP authentication?
Does this still occur for you after the latest updates?
** Package changed: knetworkmanager (Ubuntu) => plasma-widget-
networkmanagement (Ubuntu)
** Changed in: plasma-widget-networkmanagement (Ubuntu)
Status: New => Incomplete
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[Karmic] [Jaunty] kubuntu network manager can't connect to network with WEP
encryption
https://bugs.launchpad.net/bugs/446303
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