The firmware is ok.
it is not a hardware issue.
I am able to see my wlan, along with others from neighbors.
when I run iwlist scan my network comes up, but when I iwconfig under wlan0 the ESSID is incorrect even though I used the network manager to add mine.
I am able to set it up using the GUI, the GUI also can detect my wlan. The problem arises when I try to connect.
I can input all my network information. Then each time I click it to connect a pop up comes asking for my WEP. I type it in and nothing happens.
When I click the wlan settings icon it shows that my network is set up, has a signal but there is a yellow shield with an exclamation point in it next to the signal.
and as mentioned each time I try and click the wlan name to connect, it pops up a box for my WEP. When I enter it nothing happens.
Or, delete networkmanager, change control to ifup and install WICD. Your problems sound exactly like the problems I had which were easily solved doing the above.