No wifi encryption working on Realtek 8191se

[interanglo]

I cannot get my Realtek 8191se working on Kubuntu 9.10. As there is no Linux driver I used ndisgtk and RTL 8192se driver from Windows. I first tried Network Manager and then Wicd. I can see wireless networks and get through auth but it stops on requesting IP address. I found on some other forums that it could be encryption problem so I tried switching to 'no encryption' on both access point and Wicd and it's working fine!
Tried both WEP and WPA1/2 and nothing. Tried changing DHCP client from automatic to dhclient and dhcpcd and nothing. Tried changing WPA Supplicant driver from wext to other options and nothing. I'm trying it on a new laptop and I'm so desperate that I'm considering changing to another distribution or even Win. Please help, I'm not a total newbie but I've never got any problem with wifi so far.

iwconfig
lo no wireless extensions.

eth0 no wireless extensions.

wlan0 IEEE 802.11g ESSID:"BTHomeHub2-8XKN"
Mode:Managed Frequency:2.437 GHz Access Point: 00:21:04:AF:59:42
Bit Rate=65 Mb/s Tx-Power:20 dBm Sensitivity=0/3
RTS thrff Fragment thrff
Power Managementff
Link Quality:67/100 Signal level:-53 dBm Noise level:-96 dBm
Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
Tx excessive retries:0 Invalid misc:0 Missed beacon:0

[interanglo]

Re: No wifi encryption working on Realtek 8191se

sudo dhclient
There is already a pid file /var/run/dhclient.pid with pid 4326
killed old client process, removed PID file
Internet Systems Consortium DHCP Client V3.1.2
Copyright 2004-2008 Internet Systems Consortium.
All rights reserved.
For info, please visit http://www.isc.org/sw/dhcp/

Listening on LPF/eth0/00:26:22:3b:f0:25
Sending on LPF/eth0/00:26:22:3b:f0:25
Listening on LPF/wlan0/70:1a:04:3e:c2:41
Sending on LPF/wlan0/70:1a:04:3e:c2:41
Sending on Socket/fallback
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 3
DHCPREQUEST of 192.168.1.70 on eth0 to 255.255.255.255 port 67
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 3
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 4
DHCPREQUEST of 192.168.1.70 on eth0 to 255.255.255.255 port 67
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 10
DHCPREQUEST of 192.168.1.70 on eth0 to 255.255.255.255 port 67
DHCPDISCOVER on eth0 to 255.255.255.255 port 67 interval 7
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 15
DHCPDISCOVER on eth0 to 255.255.255.255 port 67 interval 11
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 14
DHCPDISCOVER on eth0 to 255.255.255.255 port 67 interval 13
DHCPDISCOVER on eth0 to 255.255.255.255 port 67 interval 19
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 10
DHCPDISCOVER on wlan0 to 255.255.255.255 port 67 interval 2
No DHCPOFFERS received.
No working leases in persistent database - sleeping.

[interanglo]

Re: No wifi encryption working on Realtek 8191se

wow, 4 days and no reply. are there any experts out there?

[interanglo]

Re: No wifi encryption working on Realtek 8191se

I give up, whats going on? No ideas at all??