Sugar 0.82 does not support NM 0.7. Support for it is being developed for 0.83 and is landing on sugar master. We need to backport it to 0.82 for Fedora 10.
I tracked this upstream http://dev.sugarlabs.org/ticket/29 since other distributions do profit from the patches as well. I have working patches now - which I just tested on F10.
I built sugar[1] and sugar-base[2]. Maybe someone wants to give it a try (You should be able to connect to a wireless network in the mesh view) [1] http://koji.fedoraproject.org/koji/buildinfo?buildID=70021 [2] http://koji.fedoraproject.org/koji/buildinfo?buildID=70017
This bug appears to have been reported against 'rawhide' during the Fedora 10 development cycle. Changing version to '10'. More information and reason for this action is here: http://fedoraproject.org/wiki/BugZappers/HouseKeeping
The basic functionality is there in Sugar on F10. It will be improved in F11.