I'm using 2.6.26.2 from Mandriva cooker.
I'm also thinking its a soft/encryption problem:
one:~# wpa_supplicant -iwlan0 -c/etc/wpa_supplicant.conf -Dwext -d
Initializing interface 'wlan0' conf '/etc/wpa_supplicant.conf' driver 'wext' ctrl_interface 'N/A' bridge 'N/A'
Configuration file '/etc/wpa_supplicant.conf' -> '/etc/wpa_supplicant.conf'
Reading configuration file '/etc/wpa_supplicant.conf'
ctrl_interface='/var/run/wpa_supplicant'
eapol_version=1
ap_scan=1
fast_reauth=1
Line 771: removed CCMP from group cipher list since it was not allowed for pairwise cipher
Priority group 0
id=0 ssid='werewolf'
Initializing interface (2) 'wlan0'
SIOCGIWRANGE: WE(compiled)=22 WE(source)=21 enc_capa=0xf
capabilities: key_mgmt 0xf enc 0xf
WEXT: Operstate: linkmode=1, operstate=5
Own MAC address: 00:1f:e2:bc:8c:01
wpa_driver_wext_set_wpa
wpa_driver_wext_set_key: alg=0 key_idx=0 set_tx=0 seq_len=0 key_len=0
wpa_driver_wext_set_key: alg=0 key_idx=1 set_tx=0 seq_len=0 key_len=0
wpa_driver_wext_set_key: alg=0 key_idx=2 set_tx=0 seq_len=0 key_len=0
wpa_driver_wext_set_key: alg=0 key_idx=3 set_tx=0 seq_len=0 key_len=0
wpa_driver_wext_set_countermeasures
ioctl[SIOCSIWAUTH]: Operation not supported
WEXT auth param 4 value 0x0 - wpa_driver_wext_set_drop_unencrypted
RSN: flushing PMKID list in the driver
Setting scan request: 0 sec 100000 usec
EAPOL: SUPP_PAE entering state DISCONNECTED
EAPOL: KEY_RX entering state NO_KEY_RECEIVE
EAPOL: SUPP_BE entering state INITIALIZE
EAP: EAP entering state DISABLED
Added interface wlan0
RTM_NEWLINK: operstate=0 ifi_flags=0x1003 ([UP])
Wireless event: cmd=0x8b06 len=8
State: DISCONNECTED -> SCANNING
Starting AP scan (broadcast SSID)
Trying to get current scan results first without requesting a new scan to speed up initial association
Received 0 bytes of scan results (0 BSSes)
CTRL-EVENT-SCAN-RESULTS
Selecting BSS from priority group 0
Try to find WPA-enabled AP
Try to find non-WPA AP
No suitable AP found.
Setting scan request: 0 sec 0 ...