Is there any kind of wireless encryption involved ? WPA-supplicant running in the background? IIRC network-manager activates wpa-supplicant by default -even if there is no wireless interface- and i remember having seen similar behaviour caused by wpa-supplicant and TKIP/AES mismatch between AP and client.
Kill wpa-supplicant, if it is interfering with ifup. Kill it anyway to find out if it does : fire up wpa_cli as root on a console and enter "terminate" on the CLI. "help" might also be useful for further debugging.
If the link stays up then, check if there's DNS ( DNS is likely to fail if the default ifup script gets interrupted ).
Otherwise try to configure the interface by hand. I do not know which tools are used by your specific HW. Might be iwconfig and iwpriv/iwlist or wlanconfig. Anyway "iwconfig" should show you if wpa_supplicant tried to set some options related to encryption/authorization which might cause the interface to connect, wait for authorization, fail and disconnect to try again.
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