Bill, You do have an Access point, right? If you have an AP, you are setting up a wireless network in "managed" (or "infrastructure") mode. The output from iwconfig below says you are still in Ad-Hoc mode. try iwconfig eth1 mode managed to put your wireless interface into managed mode.
iwconfig eth1 eth1 IEEE 802.11b/g ESSID:"deb1" Nickname:"mordor" Mode:Ad-Hoc Channel:6 Cell: 9E:05:A8:9E:54:CF Bit Rate:11Mb/s Tx-Power=31 dBm Sensitivity=20/200 Retry min limit:8 RTS thr:2347 B Fragment thr:2346 B Encryption key:off Link Quality:196/0 Signal level:-55 dBm Noise level:-245 dBm Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0 Tx excessive retries:0 Invalid misc:0 Missed beacon:0
Daniel