usb wireless connection issue on C4

I have spent lot of time to sort out usb (Belkin F5D7050) wireless
connection. So far no luck, I am stuck at ifup wlan0 with following
Error for wireless request "Set Encode" (8B2A) :
    invalid argument "key".
[ 4370.556060] ADDRCONF(NETDEV_UP): wlan0: link is not ready
[ 4370.660888] ADDRCONF(NETDEV_CHANGE): wlan0: link becomes ready
udhcpc (v1.13.2) started
run-parts: /etc/udhcpc.d/00avahi-autoipd exited with code 1
Sending discover...
Sending discover...
Sending discover...
No lease, failing

I have read previous posts and done as suggested. I am working on
linux beagleboard 2.6.29-omap1 armv7l GNU/Linux
Has anyone succeeded on this issue?

This is a late reply but thought it would help others searching. Found
the fix from this guy:

Stop the wpa_supplicant daemon. It tries to use WPA insted of WEP (or
you should just upgrade to WEP).

   start-stop-daemon -K -n wpa_supplicant

Setup your key:
   iwconfig wlan0 key

Stop and then start your wireless again:

   ifdown wlan0
   ifup wlan0

Hope that helps,