This only occurs when the lid is closed for a variable amount of time
only when using bit torrent applications, not just Transmission.  If the
lid is closed and opened up again very quickly, the issue doesn't occur.
Leaving the screen up seemingly doesn't cause the WiFi to drop.
Downloading anything else using a different protocol doesn't cause the
issue, as I downloaded Visual Studio Express last night off the
Microsoft website and closed the lid without any issues or WiFi drops.
When a drop does occur, when I open the screen again, I will be prompted
for the WEP key, and after confirming, WiFi doesn't reconnect until I
turn it off using the switch and turn it back on again.

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https://bugs.launchpad.net/bugs/941423

Title:
  When using a bittorrent program, closing the lid disconnects WiFi,
  regardless of any power setting.

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