well the fact that the network is recognised with iwlist surely shows that something does work.
I see that one of the lines output by ifdown wlan0 is :
DHCPRELEASE on wlan0 to 192.168.1.1 port 67
which means that it somehow knows that the DHCP is on 192.168.1.1 . I am wondering at what point it found out about it ...
however, these:
send_packet: Network is unreachable
send_packet: please consult README file regarding broadcast address.
don't look particularly good ...
Also, did you modify the /etc/network/interfaces file at all? The default one assumes that your router will have a running DHCP server, which would be expected of any home router ... is that the case? You could also try to set it up with a static IP in /etc/network/interfaces ... does the device ever show up in your router's control panel?
A few shots in the dark:
- run ifup with --verbose to see if it prints something else
- see if dmesg shows some useful error message while you are trying this
- did you google the name of your device (as returned by lsusb or dmesg, not necessarily its commercial name) along with the issue? Sometimes Linux drivers are just broken ...