Still happening to me (perhaps once a day) with kernel 2.6.31-14-generic, and 
not the hardware switch. 
Network manager 0.8~a~git.20091013t193206.679d548-0ubuntu1.

Wireless card:
PRO/Wireless 5100 AGN [Shiloh] Network Connection

Perhaps this is an interaction between iwlagn and network-manager.

-- 
Intel Wireless 5300 AGN: iwlagn: No space for Tx
https://bugs.launchpad.net/bugs/352228
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