Description of problem:
When using wicd or NetworkManager I can list networks and attempt to connect to them, but any connection attempt to my WPA2 net will result a wrong password notification with wicd or NetworkManager asking me again for the wlan password.

wpa_supplicant output is:
    [root@jth jonas]# wpa_supplicant -Dwext -iwlan0 -c/etc/wpa_supplicant/wpa_supplicant.conf
    ioctl[SIOCGIWSCAN]: Resource temporarily unavailable
    ioctl[SIOCSIWSCAN]: Device or resource busy
    Failed to initiate AP scan.
    ioctl[SIOCGIWSCAN]: Resource temporarily unavailable
    Trying to associate with 00:12:bf:e6:6f:d9 (SSID='WLAN-E66F88' freq=2412 MHz)
    Authentication with 00:12:bf:e6:6f:d9 timed out.
    Trying to associate with 00:12:bf:e6:6f:d9 (SSID='WLAN-E66F88' freq=2412 MHz)
    Authentication with 00:12:bf:e6:6f:d9 timed out.
    Trying to associate with 1e:39:f1:c5:2b:e9 (SSID='WLAN-E66F88' freq=2412 MHz)
    Authentication with 1e:39:f1:c5:2b:e9 timed out.
    Trying to associate with 1e:39:f1:c5:2b:e9 (SSID='WLAN-E66F88' freq=2412 MHz)
    Authentication with 1e:39:f1:c5:2b:e9 timed out.
    Trying to associate with 00:12:bf:e6:6f:d9 (SSID='WLAN-E66F88' freq=2412 MHz)
    Authentication with 00:12:bf:e6:6f:d9 timed out.
    ^CCTRL-EVENT-TERMINATING - signal 2 received
    [root@jth jonas]#

uname -a:
2.6.35.6-48.fc14.i686 (also happens with 2.6.35.9-64.fc14)

The problem appeared from one day to another without any updates to the kernel, wicd, NetworkManager or wpa_supplicant involved (or any configuration changes to the WPA2 router)

Version-Release number of selected component (if applicable):


How reproducible:
always, reboot or going back to older kernel version doesn't help

Steps to Reproduce:
1. connect to a wpa2 net with wicd, NetworkManager or wpa_supplicant
  
Actual results:
no connection established

Expected results:
connection works

Additional info:
01:00.0 Network controller: RaLink RT2860

[root@jth jonas]# iwconfig
lo        no wireless extensions.

eth0      no wireless extensions.

wlan0     IEEE 802.11bgn  Mode:Managed  Frequency:2.412 GHz  
          Access Point: Not-Associated   Tx-Power=10 dBm   
          Retry  long limit:7   RTS thr:off   Fragment thr:off
          Encryption key:off
          Power Management:off
          
[root@jth jonas]#