I am trying to run some networking software (Dynamics HMIP). It runs fine over my ethernet cable, but when I switch to wireless (which normally works) my laptop freezes. I have THREE questions.

Background:
I have an Airo 350 and Red Hat 7.3. The airo.o module comes with Redhat, so normally for tasks like sftp I just need to plug in the card and go (plus some ifconfig). For these tasks it works ok. But it doesn't seem to like my software, which SHOULD run over wireless (HMIP).

I figured since the software I'm running works fine on ethernet cable, but not on wireless, then my Airo card must be poorly configured. I read every post i could find (on LQ) about AIRO. From what I learned I did the following:
download Linux-ACU-Driver-v2.0.tar.gz (the latest driver), unpack and execute "sh kpciinstall". This ran fine without any errors (before reading the posts I previously tried "sh ./cwinstall" and had problems, don't try this approach!!)

I ran my software and it still doesn't work. This morning I discovered about IWCONFIG (I only knew about ifconfig). When I typed that I got the message:
Warning: Device eth1 has been compiled with version 6 of Wireless Extension, while we are using version 12. Some things may be broken...
<and then some information about my device, yes eth1 is my Airo card>
Q1: how do I fix this? did installing the driver do this, am I screwed by outdated drivers?

I've also seen Finegan (who seems to be some kind of wireless linux god) say to add wireless information to your ifcfg-eth1 file... but he didn't give any details and I'm not sure what fields go here. My script has the fields DEVICE, BOOTPROTO, ONBOOT, IPADDR, TYPE (ETHERNET), USERCTL, NETMASK, NETWORK, BROADCAST.
Q2: What fields am I missing, what should their values be (where appropriate)? Nb: linux seems to have some default values, as when I type iwconfig I see some settings for my wireless device. However maybe I need to configure this myself for my software to work?

Finally, the first time I installed the latest driver, on shutdown I would get the warnings:
airo: BAP setup error too many retries
airo: bad size 11
airo: unallocated FID was used to xmit
airo: weird status <some number>
When I uninstalled the drivers and reinstalled, this message is no longer there... (still problem with iwconfig).
Q3: does this have any significance? what, who, when, blah blah blah??? When I went to 'var/log' and typed 'grep -Hn "airo" *' I couldn't find these messages (before the driver reinstall).

I'm trying to do research, but that's hard when my equipment keeps freezing on me. It's extremely frustrating. Your help iS MUCH appreciated.