You need to use aes encryption. Won’t go n speed until you do so. WPA2 with AES should do the job.
Thanks for the tip – I’ll try and give that a go. Mind you I don’t recall seeing anywhere in Network Manager 0.7 where I could specify AES vs TKIP. Perhaps I need to dig around in some config files somewhere.
Update: Managed to sort it out by using wicd instead of Network Manager 0.7 – now connecting at full speed!