Here is exactly what I did, step by step.
First, lsmod.

Code:
root@bt:~# lsmod | grep -i ath9k
ath9k                 154391  0 
ath9k_htc              95301  0 
mac80211              612653  2 ath9k,ath9k_htc
ath9k_common           13606  2 ath9k,ath9k_htc
ath9k_hw              428784  3 ath9k,ath9k_htc,ath9k_common
ath                    23032  4 ath9k,ath9k_htc,ath9k_common,ath9k_hw
cfg80211              526534  4 ath9k,ath9k_htc,mac80211,ath
compat                 24704  6 ath9k,ath9k_htc,mac80211,ath9k_common,ath9k_hw,cfg80211
Then, unplugged adapter and ran these:

Code:
root@bt:~# modprobe -rf ath9k
root@bt:~# modprobe -rf ath9k_htc
root@bt:~# rfkill unblock all 
root@bt:~# modprobe ath9k_htc
root@bt:~# iwconfig
lo        no wireless extensions.

eth0      no wireless extensions.
Then, plugged adapter back in and tried to start wicd and networking.
Still nothing. Then unplugged adapter and ran these:

Code:
root@bt:~# cat /boot/config-3.2.6 | grep -i config_ath
CONFIG_ATH_COMMON=m
# CONFIG_ATH_DEBUG is not set
CONFIG_ATH5K=m
# CONFIG_ATH5K_DEBUG is not set
# CONFIG_ATH5K_TRACER is not set
CONFIG_ATH5K_PCI=y
CONFIG_ATH9K_HW=m
CONFIG_ATH9K_COMMON=m
CONFIG_ATH9K=m
CONFIG_ATH9K_PCI=y
CONFIG_ATH9K_AHB=y
CONFIG_ATH9K_DEBUGFS=y
CONFIG_ATH9K_RATE_CONTROL=y
CONFIG_ATH9K_HTC=m
CONFIG_ATH9K_HTC_DEBUGFS=y
CONFIG_ATH6KL=m
# CONFIG_ATH6KL_DEBUG is not set
root@bt:~# reboot
Then, plugged adapter back in.

Code:
root@bt:~# startx
Disconnected adapter, then:

Code:
root@bt:~# modprobe -rf ath9k
root@bt:~# modprobe -rf ath9k_htc
root@bt:~# rfkill unblock all
root@bt:~# modprobe ath9k_htc
root@bt:~# service networking start 
networking stop/waiting
root@bt:~# service wicd start
 * Starting Network connection manager wicd                              [ OK ] 
root@bt:~# iwconfig
lo        no wireless extensions.

eth0      no wireless extensions.

root@bt:~#
I am baffled. I really have no idea what could be causing this.
Thanks a ton for trying to help me out!