network-manager started working after an update the next morning.

As for comment #3,  this bug was originally observed with no entries
other than for 'lo' in /etc/network/interfaces. Network-manager was not
functioning and its icon was not visible on the top panel.

Once network-manager started working, I restored 'interfaces' to that
state, and set up parameters for eth0 using network-manager, with a
fixed IP and DNS addresses and default route.

Having done that, the system automatically uses the fixed address thus
set up when a Ethernet cable is plugged in, and accesses a wifi AP when
wifi is enabled with both the wifi button enabling the radio, and
Wireless enabled in the network-manager menu.

If there is further information that can be gathered about the system
now that it's working properly, please let me know.

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https://bugs.launchpad.net/bugs/856119

Title:
  Wifi stopped working on 21 Sept '11 update of xubuntu 11.10 beta

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