I've just re-flashed to the supported kernel but it didn't change the situation.

Things I've tried:

o reinstalling osso-connectivity-ui-conndlgs
o restarting wlancond from /etc/init.d reboots the device.
o I tried adding wlan0 to /etc/network/interfaces copying the lines for eth0 but with no effect.

Could dbus be involved? What can I check? Permissions: but where? I'm back at work now and want to connect to wifi...

Thanks.