key asked over and over again for WEP ad-hoc shared connection

Binary package hint: network-manager

1) Create a new wireless network. (I am sharing a wired connection over wireless)
2) set WEP 5 character encryption key
3) connect to network (in this case with either a mobile phone or another ubuntu computer)
4) do some stuff

Then, sporadically, network manager on the machine which is sharing the internet connection will ask for the encryption key again. It shows the hex equivalent of the original 5 ascii char key, but it does work fine.

Expected behaviour:
The key is never asked for again on the host computer

Actual:
The key is asked for repeatedly

This line:
Activation (ra0/wireless): access point 'waster10' has security, but secrets are required.
is way back in my logs, but I don't think this appeared with the occurrences of being asked for the key again.

And this:
Mar 27 09:07:04 stu-magd2676 NetworkManager: <WARN> get_secrets_cb(): Couldn't get connection secrets: Message did not receive a reply (timeout by message bus).
Mar 27 09:07:04 stu-magd2676 NetworkManager: <info> (ra0): device state change: 6 -> 9
Mar 27 09:07:04 stu-magd2676 NetworkManager: <info> Activation (ra0) failed for access point (waster10)
Mar 27 09:07:04 stu-magd2676 NetworkManager: <info> Marking connection 'waster10' invalid.
Mar 27 09:07:04 stu-magd2676 NetworkManager: <info> Activation (ra0) failed.

Is it rescanning for other networks, thereby bringing down the active network?

Jaunty beta.
Running either by b43 bcm4306 card or an edimax ralink 2870 - same result.
ra0 RT2870 Wireless ESSID:"waster10" Nickname:"RT2870STA"
          Mode:Ad-Hoc Frequency=2.427 GHz Cell: 8A:45:5F:25:F9:7F
          Bit Rate=54 Mb/s
          RTS thr:off Fragment thr:off
          Link Quality=100/100 Signal level:-48 dBm Noise level:-83 dBm
          Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
          Tx excessive retries:0 Invalid misc:0 Missed beacon:0

some possibly relevant stuff from the logs
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: init!
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: update_system_hostname
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPluginIfupdown: management mode: unmanaged
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: device added (udi: /org/freedesktop/Hal/devices/net_00_c0_f0_17_60_bb, iface: eth0): not well known
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: device added (udi: /org/freedesktop/Hal/devices/net_00_00_6c_2d_ba_33, iface: eth1): not well known
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: device added (udi: /org/freedesktop/Hal/devices/net_usb_device_7392_7711_1_0, iface: ra0): not well known
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: device added (udi: /org/freedesktop/Hal/devices/net_00_11_50_0b_58_cd, iface: wlan0): not well known
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: end _init.
Mar 27 09:01:47 stu-magd2676 nm-system-settings: Loaded plugin ifupdown: (C) 2008 Canonical Ltd. To report bugs please use the NetworkManager mailing list.
Mar 27 09:01:47 stu-magd2676 nm-system-settings: Loaded plugin keyfile: (c) 2007 - 2008 Red Hat, Inc. To report bugs please use the NetworkManager mailing list.
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: (29315200) ... get_connections.
Mar 27 09:01:47 stu-magd2676 nm-system-settings: SCPlugin-Ifupdown: (29315200) ... get_connections (managed=false): return empty list.
Mar 27 09:01:47 stu-magd2676 nm-system-settings: Ifupdown: get unmanaged devices count: 0

Mar 27 14:10:22 stu-magd2676 NetworkManager: <debug> [1238163022.712793] nm_dnsmasq_manager_start(): Command line: /usr/sbin/dnsmasq --no-hosts --keep-in-foreground --bind-interfaces --no-poll --except-interface=lo --listen-address=10.42.44.1 --dhcp-range=10.42.44.10,10.42.44.100,60m --dhcp-option=option:router,10.42.44.1 --dhcp-lease-max=50 --pid-file=/var/run/nm-dnsmasq-ra0.pid