Same problem -- and it DOES work with WEP -- just not WPA.

Let me start by saying that I use ndiswrapper to (try to) connect to a
WPA wireless Network using a Netgear WG111v1 and NetworkManager.

If I try to connect to the WPA network it just won't connect (No
NetworkManager green button lights) even though it tries for a few
minutes and then fails. If I change the security method to open WEP on
my router it connects perfectly and automatically. My wireless adapter
used to connect to the WPA network in version -9 of the kernel (with a
modprobe reload of ndiswrapper every time I booted).

Note I have blacklisted prism54usb for ndiswrapper

-- 
WPA doesn't work with NetworkManager using the bcm43xx driver (works with 
wpa_supplicant)
https://bugs.launchpad.net/bugs/101857
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