wl12xx does not work with WPA2-personal using linux 3.4.7


we are facing a problem with wl1271 module when connecting to WPA2-personal network with ciper AES.It connects and keeps retrying for IP address after connecting (and suddently disconnects as well).
We are using ubuntu 12.04 with linux kernel 3.4.7 built using stable-kernel tree. Hardware setup consists of beagle board connected to the chipsee module that has touchscreen and the wl1271 module.

I am mentioning two scenarios here:

  1. Here we use a router that we can configure to different wifi security. If we set the wifi network to open i.e security=None, wl1271 module gets connected. Hence does not seem to be problem related to antenna or range.
  2. If i remove driver for wl12xx and connect a USB dongle (r8712u), and try to connect to the same WPA2-personal network.It works and gets the IP address.However we want to use on board wl12xx module.

Has any one seen problem like this with wl12xx module? Is it the problem with the wl12xx driver?

Does wpa2-personal work with wl12xx with latest linux kernel (3.7.2)?

Any pointers towards this would be of great help.