It doesn't matter that your system is identifying the wireless adapter as eth1, that's actually quite common. The adapter on my Debian Etch machine and my Mint laptop are both detected as eth1. Some distros detect them as wlan1, and the atheros chipset based wireless adapters are usually detected as ath1. As long as it is detected as a wireless adapter, you are ok.
When you ran iwlist eth1 scan, what was the result? Did you see a list of available connection points?
What distribution are you running (i.e. Fedora, Ubuntu, etc.)?
Finally, what is the results of iwconfig?