Had this issue too. Maybe this sounds stupid, but could you try this:
- Click left on the network manager symbol in the system tray.
- Check enable networking

Solved it for me, though I'm not sure if anything else I did before finding the 
option is required. If it doesn't work, try the only other thing I did:
sudo rmmod iwlagn
sudo modprobe iwlagn

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https://bugs.launchpad.net/bugs/496640

Title:
  iwlagn WLAN no longer works after upgrade to 2.6.31-17

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