Tethering now failing, possible kernel regression in 3.2.0-26-generic

Hello, I've experienced what appears to be a kernel regression in 12.04 x64 Desktop [1]. Tethering my Android phone (Nexus S) via USB works fine in 3.2.0-25-generic (and all prior kernels for the past year), but not in 3.2.0-26-generic.

In 3.2.0-26-generic, I can plug in my phone, turn on tethering in the phone system menu, and the Tethering icon appears in the phone menu bar (the phone thinks it is successfully tethered).

But Ubuntu's network icon just spins indefinitely without ever completing the connection, and internet access is not available.

Rebooting and reverting from 3.2.0-26-generic to 3.2.0-25-generic in GRUB solves the problem.

Not sure if 'network-manager-applet' is the right package to report - the network indicator applet just spins but the bug may be elsewhere.

Hardware: HP dm1-4050us laptop.

http://ubuntuforums.org/showthread.php?t=2028250

https://answers.launchpad.net/ubuntu/+question/203660

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: network-manager-gnome 0.9.4.1-0ubuntu2
ProcVersionSignature: Ubuntu 3.2.0-26.41-generic 3.2.19
Uname: Linux 3.2.0-26-generic x86_64
ApportVersion: 2.0.1-0ubuntu11
Architecture: amd64
Date: Fri Jul 20 15:37:53 2012
ExecutablePath: /usr/bin/nm-connection-editor
IfupdownConfig:
 auto lo
 iface lo inet loopback
InstallationMedia: Ubuntu 12.04 LTS "Precise Pangolin" - Release amd64 (20120425)
IpRoute:
 default via 192.168.1.1 dev wlan0 proto static
 169.254.0.0/16 dev wlan0 scope link metric 1000
 192.168.1.0/24 dev wlan0 proto kernel scope link src 192.168.1.101 metric 2
NetworkManager.state:
 [main]
 NetworkingEnabled=true
 WirelessEnabled=true
 WWANEnabled=true
 WimaxEnabled=true
ProcEnviron:
 LANGUAGE=en_US.UTF-8
 LC_CTYPE=en_US.UTF-8
 PATH=(custom, user)
 LANG=en_US.UTF-8
 SHELL=/bin/zsh
SourcePackage: network-manager-applet
UpgradeStatus: No upgrade log present (probably fresh install)
nmcli-dev:
 DEVICE TYPE STATE DBUS-PATH
 eth0 802-3-ethernet unavailable /org/freedesktop/NetworkManager/Devices/1
 wlan0 802-11-wireless connected /org/freedesktop/NetworkManager/Devices/0
nmcli-nm:
 RUNNING VERSION STATE NET-ENABLED WIFI-HARDWARE WIFI WWAN-HARDWARE WWAN
 running 0.9.4.0 connected enabled enabled enabled enabled disabled