It looks like this may not be specific only to hostap. A co-worker mentioned he had the same problem with an atheros card and there are reports upstream of the same problem with intel and with ndiswrapper.
See http://hostap.epitest.fi/bugz/show_bug.cgi?id=62 ** Changed in: wpasupplicant (Ubuntu) Status: Needs Info => Confirmed -- hostap drivers don't work with NetworkManager https://launchpad.net/bugs/57146 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs