I can confirm this and it is a known issue with the Madwifi drivers.
Robert Love posted a workaround for this and Network-Manager here:

http://mail.gnome.org/archives/networkmanager-
list/2006-January/msg00141.html

The second patch he posts works as of 0.6.4

Dan Williams is hesitant to put patches for hardware specific issues
like this into the release and instead leaves it up to each distribution
maintainer if they would like to include it or not.

In my opinion this patch is just like the rml-wpa-workarounds patch and
is necessary for proper operation of atheros cards and should be
included in the distributions release especially since NetworkManager is
going to be included by default.

On a side note, the gnome net-applet implements a similar workaround for
Athero's cards.

-- 
wrong signal level on Macbook with Atheros chip
https://launchpad.net/bugs/69709

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