Hi all!

I'm having troubles with enabling WPA in hostapd - it doesn't work
with minimal setup suggested at 
http://linuxwireless.org/en/users/Documentation/hostapd.

The hardware seem to be fine - I'm able to connect without 
authentication, but when I try to enable WPA, no clients can
connect and I can see the following error in hostapd.log:

wlan0: STA 00:24:d6:58:bb:e2 IEEE 802.11: deauthenticated due to local 
deauth request

The cause seem to be in this line:

wlan0: STA 00:24:d6:58:bb:e2 WPA: EAPOL-Key timeout
wlan0: STA 00:24:d6:58:bb:e2 WPA: PTKSTART: Retry limit 4 reached

I'm attaching all relevant information to this letter - host and client
information, log messages and interface dumps.

I've also tried to play with other settings, but nothing seem to help.
Can anybody suggest directions to what should I look at next?