I experience the exact same issue after upgrading to 12.10 Beta2. I am
using the latest kernel build at the time of this writing.

I have found two solutions that have worked for me:

1.) Downgrade to 12.04 LTS (WPA2 works fine in precise)

2.) Switch to WPA, rather than WPA2 on the AP.  It is a compromise in
security but in my case I am using a MAC filter and I created a separate
WLAN SSID that uses WPA exclusively. 12.10 B2 seems to work with WPA
just fine; with WPA2 it seems to fail at SSID PSK negotiation. I am
still able to use TKIP and/or AES with WPA, just cannot use WPA2 (using
TKIP or AES).

The wireless interface I am using is a USB Belkin 54G, 12.10 B2 seems to
be using the same driver that 12.04 LTS was using. I have tried to
connect to other WPA2 SSID's using 12.10 B2 and I get consistent
failure.

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https://bugs.launchpad.net/bugs/1052099

Title:
  Cannot connect to wireless

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