Ok, the "s:" stuff is for a "string" based key, ie: *not* hexadecimal, to enter say a 64bit hex key use xxxx-xxxx-xx. If you still need more help, post the output of ifconfig and iwconfig with your card plugged in. (for security mangle your MAC address before posting.) better yet, re-read the manual for iwconfig, from whence most of this info comes.
Also, be aware some distros bypass the wireless.opts file entirely and use their own mechanism, for instance in Mandrake 9.0 I use /etc/sysconfig/network-scripts/ifcfg-eth0 to pass params for my wireless cards to iwconfig, the wireless.opts file is never even read, you can prove this by adding some logger lines to the file and checking your logs. The params end up being environment vars that eventually get consumed by iwconfig.
Here's a link to a mini-howto I made for 2 wireless cards I recently got working with linux there may some useful info in there for you: