This Bug affects me too.
I first used the Fritz!Usb stick with NDISwrapper and thought it broke with my 
update to lucid.
The i bought a Netgear WG111v3 and it still didnt work.
I was frustrated and used a very long ethernet cable across my living room for 
some weeks now.
i thank Stefan for his workaround.
This Bug is really annoying and should not be present in a LTS Version!

** Summary changed:

- ath5k driver misspells the ESSID for ad-hoc networks
+ network-manager misspells the ESSID for ad-hoc networks

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network-manager misspells the ESSID for ad-hoc networks
https://bugs.launchpad.net/bugs/543343
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