It has been several days reading countless forums in search for a solution for the "bad password" issue... None worked for me. Now that I found a solution on my own that I couldn't see anywhere else, I decided to share.
I have a Dell Vostro 1310 notebook with BT5 (18.104.22.168) and Windows Vista, and my network card is the RTL8169. The wired connection works, but no luck with wireless under RT5; in Vista it worked perfectly.
I tried many proposed fixes which did not work, such as (not in any particular order):
- uninstall wicd and reinstall
- removed network-manager (since I didn't have it, I installed and uninstalled it)
- change the wifi channel of my router
- changed my router's encryption type (TKIP/AES), mode (WPA/WPA2), SSID, etc
- disabled the wake on lan under windows
- downloaded, compiled and installed the latest driver from Realtek under BT5
- downloaded the latest Realtek driver for Windows
- used wpa_supplicant manually to connect (this is when I was sure it isn't a wicd issue)
- tried all available drivers on wpa_supplicant (such as wext)
- reinstalled BT5
- added b43 to load up at boot
- downgraded kernel
- disabled the rx offload on my eth0
I did many other things that I can't even remember... Even opened up my laptop and cleaned the board!
Well... finally I found the solution. The problem in my case is with the RTL8169 architecture, it seems.
Since my computer is a Dell and despite the fact that I had already installed the latest official Realtek driver on both Windows and RT5, I decided to try one last desperate attempt. I went on Dell's support site and downloaded their latest network driver package for my machine and installed it on WINDOWS. I rebooted and went into RT5 to test, and to my surprise, it worked on the first try and has been working since then.
The only possible explanation I can come up with is that the Dell update (which was over 50Mb) had also a firmware upgrade embedded, which fixed some issue with the NIC that was the cause of the problems in RT5. Crazy, but worked.
My advice to all those who have not been able to fix the "bad password" or any other wireless connectivity problem is to get the computer manufacturer's update for the network card instead or the card's manufacturer (Realtek in this case). Do it on Windows if you have dual boot, it is likely that they care more for those clients and work harder on the updates.
This may work for other brands and other distros, it may be worth a shot.
I hope this helps anyone with the issue. Just as a reminder, my config was DELL + BT5 + VISTA + RTL8169.