Ok I tested with WEP (I had to enable mixed mode g/n to enable WEP).

- On 3.2 kernel, again connection was rock solid at 54 mbps no matter what I 
browse.
- On 3.4,  connection seem to max at 36 mpbs, fluctuates between 6 to 22 mbps 
on some internet traffic. File transfer rates are lower, but it took more time 
to get throttled to 1 mbps. But after some time it recovered and is now at 
around 36 mbps as I am not transferring much. Here I open a youtube video and 
it goes to 11 mbps and back to 1 mbps(throttled)  and recovers to 5.5, staying 
there. Basically its unstable.

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https://bugs.launchpad.net/bugs/994104

Title:
  Wireless performance issues on kernel 3.4.0-1-generic (iwlwifi)

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