Confirming. The bug persists in 6.06.1 on ThinkPad X32. The workaround
works well for me. However, I don't have to type the WEP key. ifup does
that for me.

$ sudo eth1 key restricted

After typing the above command, the WiFi LED, which is below the LCD,
lights up. Now I can bring up the wireless connection using either ifup
or the Networking graphic tool.

The symtoms before manually switching the security mode to "restricted"
can be found in the second post of
<http://www.ubuntuforums.org/showthread.php?t=232349>.

Everything used to work well in breezy.

-- 
WEP key setting doesn't work on IPW2200 without "restricted"
https://launchpad.net/bugs/20247

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