diff --git a/drivers/net/wireless/atmel.c b/drivers/net/wireless/atmel.c
index 98a76f10a0f71f29f09ef031b000659dbbccb09c..dfc24016ba81735a721b169d561e4993dcf3bdb1 100644
--- a/drivers/net/wireless/atmel.c
+++ b/drivers/net/wireless/atmel.c
@@ -1872,7 +1872,7 @@ static int atmel_set_encodeext(struct net_device *dev,
 	struct atmel_private *priv = netdev_priv(dev);
 	struct iw_point *encoding = &wrqu->encoding;
 	struct iw_encode_ext *ext = (struct iw_encode_ext *)extra;
-	int idx, key_len;
+	int idx, key_len, alg = ext->alg, set_key = 1;
 
 	/* Determine and validate the key index */
 	idx = encoding->flags & IW_ENCODE_INDEX;
@@ -1883,39 +1883,42 @@ static int atmel_set_encodeext(struct net_device *dev,
 	} else
 		idx = priv->default_key;
 
-	if ((encoding->flags & IW_ENCODE_DISABLED) ||
-	    ext->alg == IW_ENCODE_ALG_NONE) {
-		priv->wep_is_on = 0;
-		priv->encryption_level = 0;
-		priv->pairwise_cipher_suite = CIPHER_SUITE_NONE;
-	}
+	if (encoding->flags & IW_ENCODE_DISABLED)
+	    alg = IW_ENCODE_ALG_NONE;
 
-	if (ext->ext_flags & IW_ENCODE_EXT_SET_TX_KEY)
+	if (ext->ext_flags & IW_ENCODE_EXT_SET_TX_KEY) {
 		priv->default_key = idx;
+		set_key = ext->key_len > 0 ? 1 : 0;
+	}
 
-	/* Set the requested key */
-	switch (ext->alg) {
-	case IW_ENCODE_ALG_NONE:
-		break;
-	case IW_ENCODE_ALG_WEP:
-		if (ext->key_len > 5) {
-			priv->wep_key_len[idx] = 13;
-			priv->pairwise_cipher_suite = CIPHER_SUITE_WEP_128;
-			priv->encryption_level = 2;
-		} else if (ext->key_len > 0) {
-			priv->wep_key_len[idx] = 5;
-			priv->pairwise_cipher_suite = CIPHER_SUITE_WEP_64;
-			priv->encryption_level = 1;
-		} else {
+	if (set_key) {
+		/* Set the requested key first */
+		switch (alg) {
+		case IW_ENCODE_ALG_NONE:
+			priv->wep_is_on = 0;
+			priv->encryption_level = 0;
+			priv->pairwise_cipher_suite = CIPHER_SUITE_NONE;
+			break;
+		case IW_ENCODE_ALG_WEP:
+			if (ext->key_len > 5) {
+				priv->wep_key_len[idx] = 13;
+				priv->pairwise_cipher_suite = CIPHER_SUITE_WEP_128;
+				priv->encryption_level = 2;
+			} else if (ext->key_len > 0) {
+				priv->wep_key_len[idx] = 5;
+				priv->pairwise_cipher_suite = CIPHER_SUITE_WEP_64;
+				priv->encryption_level = 1;
+			} else {
+				return -EINVAL;
+			}
+			priv->wep_is_on = 1;
+			memset(priv->wep_keys[idx], 0, 13);
+			key_len = min ((int)ext->key_len, priv->wep_key_len[idx]);
+			memcpy(priv->wep_keys[idx], ext->key, key_len);
+			break;
+		default:
 			return -EINVAL;
 		}
-		priv->wep_is_on = 1;
-		memset(priv->wep_keys[idx], 0, 13);
-		key_len = min ((int)ext->key_len, priv->wep_key_len[idx]);
-		memcpy(priv->wep_keys[idx], ext->key, key_len);
-		break;
-	default:
-		return -EINVAL;
 	}
 
 	return -EINPROGRESS;
@@ -3061,17 +3064,26 @@ static void authenticate(struct atmel_private *priv, u16 frame_len)
 	}
 
 	if (status == C80211_MGMT_SC_Success && priv->wep_is_on) {
+		int should_associate = 0;
 		/* WEP */
 		if (trans_seq_no != priv->ExpectedAuthentTransactionSeqNum)
 			return;
 
-		if (trans_seq_no == 0x0002 &&
-		    auth->el_id == C80211_MGMT_ElementID_ChallengeText) {
-			send_authentication_request(priv, system, auth->chall_text, auth->chall_text_len);
-			return;
+		if (system == C80211_MGMT_AAN_OPENSYSTEM) {
+			if (trans_seq_no == 0x0002) {
+				should_associate = 1;
+			}
+		} else if (system == C80211_MGMT_AAN_SHAREDKEY) {
+			if (trans_seq_no == 0x0002 &&
+			    auth->el_id == C80211_MGMT_ElementID_ChallengeText) {
+				send_authentication_request(priv, system, auth->chall_text, auth->chall_text_len);
+				return;
+			} else if (trans_seq_no == 0x0004) {
+				should_associate = 1;
+			}
 		}
 
-		if (trans_seq_no == 0x0004) {
+		if (should_associate) {
 			if(priv->station_was_associated) {
 				atmel_enter_state(priv, STATION_STATE_REASSOCIATING);
 				send_association_request(priv, 1);
@@ -3084,11 +3096,13 @@ static void authenticate(struct atmel_private *priv, u16 frame_len)
 		}
 	}
 
-	if (status == C80211_MGMT_SC_AuthAlgNotSupported) {
+	if (status == WLAN_STATUS_NOT_SUPPORTED_AUTH_ALG) {
 		/* Do opensystem first, then try sharedkey */
-		if (system ==  C80211_MGMT_AAN_OPENSYSTEM) {
+		if (system == WLAN_AUTH_OPEN) {
 			priv->CurrentAuthentTransactionSeqNum = 0x001;
-			send_authentication_request(priv, C80211_MGMT_AAN_SHAREDKEY, NULL, 0);
+			priv->exclude_unencrypted = 1;
+			send_authentication_request(priv, WLAN_AUTH_SHARED_KEY, NULL, 0);
+			return;
 		} else if (priv->connect_to_any_BSS) {
 			int bss_index;
 
@@ -3439,10 +3453,13 @@ static void atmel_management_timer(u_long a)
 			priv->AuthenticationRequestRetryCnt = 0;
 			restart_search(priv);
 		} else {
+			int auth = C80211_MGMT_AAN_OPENSYSTEM;
 			priv->AuthenticationRequestRetryCnt++;
 			priv->CurrentAuthentTransactionSeqNum = 0x0001;
 			mod_timer(&priv->management_timer, jiffies + MGMT_JIFFIES);
-			send_authentication_request(priv, C80211_MGMT_AAN_OPENSYSTEM, NULL, 0);
+			if (priv->wep_is_on && priv->exclude_unencrypted)
+				auth = C80211_MGMT_AAN_SHAREDKEY;
+			send_authentication_request(priv, auth, NULL, 0);
 	  }
 	  break;
 
@@ -3541,12 +3558,15 @@ static void atmel_command_irq(struct atmel_private *priv)
 				priv->station_was_associated = priv->station_is_associated;
 				atmel_enter_state(priv, STATION_STATE_READY);
 			} else {
+				int auth = C80211_MGMT_AAN_OPENSYSTEM;
 				priv->AuthenticationRequestRetryCnt = 0;
 				atmel_enter_state(priv, STATION_STATE_AUTHENTICATING);
 
 				mod_timer(&priv->management_timer, jiffies + MGMT_JIFFIES);
 				priv->CurrentAuthentTransactionSeqNum = 0x0001;
-				send_authentication_request(priv, C80211_MGMT_AAN_SHAREDKEY, NULL, 0);
+				if (priv->wep_is_on && priv->exclude_unencrypted)
+					auth = C80211_MGMT_AAN_SHAREDKEY;
+				send_authentication_request(priv, auth, NULL, 0);
 			}
 			return;
 		}