I have the same problem.
Workaround: After every kernel update I must recompile the wireless
driver from compat-wireless with the following modifications in
iwl-4965.c
struct iwl_cfg iwl4965_agn_cfg = {
...
.broken_powersave = true
}
change this to
struct iwl_cfg iwl4965_agn_cfg = {
...
.broken_powersave = false
}
So I must set broken_powersave = false to get working wlan powsersafe.
broken_powersave = true has been introduced in the kernel as a "bug fix"
to prevent some other bug (that is not interesting for me, because it is
more important to keep the wlan card cool), see
http://readlist.com/lists/vger.kernel.org/linux-kernel/149/746227.html
--
iwagn resets power_level to 0
https://bugs.launchpad.net/bugs/367121
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