Fails to report wpa_ie causing wpa to abort

Driverloader fails to report the variable 
extra:wpa_ie
when scanning using iwlist on my desktop computer, this in turn forces 
wpa_supplicant to abort since the wpa_ie_len is zero and there is no WPA/RSN 
IE. 

The desktop(Saruman) computer running with driverloader reports the following:
------------------------
[root@Saruman]# iwlist eth1 scanning
eth1      Scan completed :
          Cell 01 - Address: 00:0D:88:20:CF:04
                    ESSID:"Procyon"
                    Mode:Managed
                    Frequency:2.472 GHz (Channel 13)
                    Quality:28/94  Signal level:-35 dBm  Noise level:-154 dBm
                    Encryption key:on
                    Bit Rate:1 Mb/s
                    Bit Rate:2 Mb/s
                    Bit Rate:5.5 Mb/s
                    Bit Rate:11 Mb/s
                    Extra:bcn_int=100
[root@Saruman]#

My router is a D-Link DI-514 with firmware 1.03 also with WPA support.
The router is set to WPA-PSK encryption and Windows XP connects flawlessly on 
my laptop. Booting Linux on my Laptop and running iwlist I get the following:
[root@klax]# iwlist ath0 scanning
ath0      Scan completed :
          Cell 01 - Address: 00:0D:88:20:CF:04
                 ESSID:"Procyon"
                 Mode:Master
                 Frequency:2.472 GHz (Channel 13)
                 Quality:20/94  Signal level:-75 dBm  Noise level:-95 dBm
                 Encryption key:on
                 Bit Rate:1 Mb/s
                 Bit Rate:2 Mb/s
                 Bit Rate:5.5 Mb/s
                 Bit Rate:11 Mb/s
                 Extra:bcn_int=100
                 Extra:wpa_ie=dd160050f20101000050f20201000050f20201000050f202
[root@klax]#

My adapter is D-Link DWL-520+, with the latest driver from D-Link, version 
3.07 with WPA support as reported by driverloader:

[root@Saruman ~]# cat /proc/driver/driverloader/eth1/capabilities
WPA, TKIP, WEP128, WEP64

(note: the driver for that adapter on Linuxant's website is version 3.03 
without wpa support)

Im using driverloader version 2.28 on Mandrive Linux LE 2005.

And the wpa_supplicant reports this:
[root@Saruman ]# wpa_supplicant -i eth1 -c /etc/wpa_supplicant.conf -d
Initializing interface 'eth1' conf '/etc/wpa_supplicant.conf' driver 'default'
Configuration file '/etc/wpa_supplicant.conf' -> '/etc/wpa_supplicant.conf'
Reading configuration file '/etc/wpa_supplicant.conf'
ctrl_interface='/var/run/wpa_supplicant'
ctrl_interface_group=0
eapol_version=1
ap_scan=1
fast_reauth=1
Priority group 0
   id=0 ssid='Procyon'
Initializing interface (2) 'eth1'
EAPOL: SUPP_PAE entering state DISCONNECTED
EAPOL: KEY_RX entering state NO_KEY_RECEIVE
EAPOL: SUPP_BE entering state INITIALIZE
EAP: EAP entering state DISABLED
EAPOL: External notification - portEnabled=0
EAPOL: External notification - portValid=0
Own MAC address: 00:0d:88:8b:28:db
wpa_driver_hostap_set_wpa: enabled=1
wpa_driver_hostap_set_key: alg=none key_idx=0 set_tx=0 seq_len=0 key_len=0
wpa_driver_hostap_set_key: alg=none key_idx=1 set_tx=0 seq_len=0 key_len=0
wpa_driver_hostap_set_key: alg=none key_idx=2 set_tx=0 seq_len=0 key_len=0
wpa_driver_hostap_set_key: alg=none key_idx=3 set_tx=0 seq_len=0 key_len=0
wpa_driver_hostap_set_countermeasures: enabled=0
wpa_driver_hostap_set_drop_unencrypted: enabled=1
Setting scan request: 0 sec 100000 usec
RTM_NEWLINK, IFLA_IFNAME: Interface 'eth1' added
RTM_NEWLINK, IFLA_IFNAME: Interface 'eth1' added
Starting AP scan (specific SSID)
Scan SSID - hexdump_ascii(len=7):
     50 72 6f 63 79 6f 6e                              Procyon
ioctl[PRISM2_IOCTL_HOSTAPD]: Operation not supported
Failed to initiate AP scan.
Setting scan request: 10 sec 0 usec
Scan timeout - try to get results
Received 138 bytes of scan results (1 BSSes)
Scan results: 1
Selecting BSS from priority group 0
0: 00:0d:88:20:cf:04 ssid='Procyon' wpa_ie_len=0 rsn_ie_len=0
   skip - no WPA/RSN IE
No suitable AP found.
Setting scan request: 5 sec 0 usec
Starting AP scan (broadcast SSID)
Wireless event: cmd=0x8b19 len=12
Received 138 bytes of scan results (1 BSSes)
Scan results: 1
Selecting BSS from priority group 0
0: 00:0d:88:20:cf:04 ssid='Procyon' wpa_ie_len=0 rsn_ie_len=0
   skip - no WPA/RSN IE
No suitable AP found.

My wpa_supplicant configuration is, where the key is generated using 
wpa_passphrase
network={
    ssid="Procyon"
    key_mgmt=WPA-PSK
    psk=***Removed***
    proto=WPA
    scan_ssid=1
}

Hope anyone can help
Regards,
Lars B. Termansen