I'm experiencing this issue from time to time ( ~ every 5 reboot). I need to 
reboot the computer to make it work again. 
I'm using Intel Corporation PRO/Wireless 2200BG wireless card, the  
2.6.24-16-generic kernel and nm-applet 0.6.6.
When I read the dmesg output:

ieee80211_crypt: registered algorithm 'TKIP'
ieee80211_crypt_tkip: could not allocate crypto API arc4

I hope that it will help.

-- 
[hardy] Can't connect to WPA wireless connection using nm-applet
https://bugs.launchpad.net/bugs/229382
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