On Fedora Core 2, I get this on boot and when I click 'activate' in the system-config-network GUI for my Orinoco card, which is eth1.
lsmod shows orinoco, used by orinoco_cs, so that looks ok.
iwconfig only lists 'no wireless extensions' for l0, sit0 and eth0, but I want eth1 - is this the problem?
ifconfig just shows l0.
I had this problem with my orinoco card in both FC1 and now FC2. For FC1 I used the network config program (system-config-network?) to remove eth1 (my orinoco card, which it thought was not wireless) and then to add a new wireless connection.
For FC2 that didn't work. I played around with it for a while and I think what ended up fixing the problem was removing eth1 (or whatever your orinoco device is), closing system-config-network, then restarting it and adding a wireless connection. Sorry I can't be more specific, I just fumbled with it until it worked.
Peter