Ah, I see. thanks for reporting back.
btw, you might want to replace the madwifi driver with wext in
/etc/network/interfaces. the madwifi backend is going to be removed in
the next release of ubuntu (8.10)
** Changed in: wpasupplicant (Ubuntu)
Status: New => Invalid
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[madwifi] ar5212 and WPA-PSK: fails to associate
https://bugs.launchpad.net/bugs/245585
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