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Okay, after much trial and continued errors I got this working properly.

Following is what DID NOT WORK
Re-Applying 10.5.2 combo updater
Archive and install of Leopard
Reset PRAM
Reset Open Firmware

This is what finally WORKED for me.
Go into System Preferences>Network

Delete (use the minus sign at the bottom of the list) all of the network services except for Firewire. (it won't let you delete all of them)

Add the network services back (plus sign), starting with AirPort.

As soon as I added AirPort, the menu bar icon started working and detected the network with no problems.

Yup, believe it or not the tip still works, even on 10.6.4 and i5 processor MBPs :)

Thank you, of course :)
 
Another Simpler Solution

From Network Preferences.
Click the Location drop down menu (top of the window).
Edit Locations.
Create a new location.
Apply changes to make the new location the active location.

Verify that the AirPort menu now functions properly.

Go back in to Network Preferences and Delete the Old Location (if you want to).

This just worked for me on a borked Air.

-glhf!
 
This worked perfectly!

Sorry if I'm bringing an old thread back to life, but this actually worked for me on my 2011 macbook pro. For some reason, my airport wasn't showing up. My computer actually said one wasn't installed - my computer isn't even a week old. So naturally, I brought my computer to an Apple store for them to look at. They concluded that my airport card must be malfunctioning, and offered to replace the airport card (I was told it would take a few days because they needed to order the part). Since I still have another week to return this computer to BestBuy without any restocking fees (premier silver member), I decided to just return it rather than getting stuck with refurbished parts in my otherwise brand new computer.

Long story short, I was backing up my hard drive in preparation of returning my computer to BestBuy tomorrow and surfing the web when I came across this thread. I did exactly what Kahuna says in the quote below, and my airport was working again, good as new. Thanks so much Kahuna!

This is what finally WORKED for me.
Go into System Preferences>Network

Delete (use the minus sign at the bottom of the list) all of the network services except for Firewire. (it won't let you delete all of them)

Add the network services back (plus sign), starting with AirPort.

As soon as I added AirPort, the menu bar icon started working and detected the network with no problems.
 
FINALLY fixed this after 3 hours at 01:00 am ( with a 05:30 start looming)
answer was here, had to come back and thank kahuna1342 for the post.
 
Simple Fix

Everytime I click "turn airport on" it goes back to "Not Configured", and the whole thing is grayed out.

Very bothersome.

Any other ideas?

I was hitting the same problem. All I had to do was change the service order like yfcui suggested, using the settings tab in the column with Ethernet, Bluetooth etc....

Btw I didn't have to do anything else for it to work, this was a simple fix. Hopefully it works for others

A quick fix to an otherwise confusing & frustrating glitch...
 
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