I solve that issue remove network-manager and network-manager-gnome.
Then i installed the packages from http://packages.ubuntu.com/karmic/net/ and 
restarted
The automatic connection to hidden network now works and the password box is 
now greyed anymore...
I don't find any evidence that can be cause by that but now its actually 
working.

Try it your self and post if it works

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Password box greyed out connecting to a hidden wirless network
https://bugs.launchpad.net/bugs/503946
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