Network manager will not manage interfaces that have been configured in '/etc/network/interfaces' as yours has. Removing the wireless ESSID and key might be enough to get network-manager to manage your interface.
-- Wireless no longer works after upgrade https://launchpad.net/bugs/96532 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs