I actually do have it running in the encrypted mode right now, with 128-bit encryption in a non ITU network. This works both with native kernel 2.6.1 drivers (on recent gentoo linux) and kernel 2.4.18 + recent atmelwlandriver (the one ITU uses, perhaps newer version) on an gool old stable debian Woody 3 r2.

At ITU network with DWINE it does not work. Perhaps the reason being 40 bit encryption or I got the wrong key password or the MAC address is not properly set up in the AP.

The card definitely does not work in essidany mode (either encrypted and unencrypted). Actually even the list of the networks it can see (in the scanning mode) depends on the ESSID you set. This is very weird. It only works reliably if essid is fixed by using iwconfig (or by setting it in /etc/pcmcia/wireless.opts or any other software and distro-relevant place).