Well, after a few days of running r34498 on my RT-N16s I've gone back to TomatoUSB for now. I just couldn't get WDS working with any form of encryption. I tried everything I could find on the net related to WDS, WPA, Openwrt and Broadcom. But most of it is written for the older 2.4 and 2.6 kernel binary drivers. I believe these builds are built from newer released Broadcom source for the wl driver?
Ironically though, going back to Tomato I couldn't get WDS working *at all*, despite successfully running WDS with both WPA and WPA2 for months previously. I couldn't get it to connect at all, even without encryption. Full nvram clears and 30/30/30 resets did't solve the problem, so in frustration I ended up buying a pair of Netcomm Homeplug AV devices for the link between routers. It's currently running even slower than the WDS link though, at about 16Mbit/s. But hopefully it won't drop out every couple of weeks.
Anyway, I may well return to Openwrt now that WDS isn't a factor, particularly if you guys get a 3.6 kernel build working - I'd like to try the codel bufferbloat/QoS package.
Thanks for all your work on this.
Paul