With the configuration attached I cannot connect to a ASUS WL500gP router running FreeWRT 1.0.2 pulled from the SVN (2500).
Services such as dnsmasq and firewalling are configured using LAN interface br0 and WAN interface eth0.1. I believe that the problem occurs at the association level (wired Ethernet works OK). Connecting using different clients and/or client hardware gives the same result - flip-flopping of connection (fast switching betwen associated and unassociated states) with no IP level connectivity. I have not tested another setup for I am interested in WPA-PSK/WPA2-PSK only.