Googled around and found the bug on Launchpad. The key piece to sorting this out was adding this line to my /etc/modprobe.
options cfg80211 ieee80211_regdom= "EU" 
 "iwlist wlan0 channel" previously only reported channels 1 to 11, but now shows all of them. No problems connecting to the AP now on channel 13:
steve@steve-laptop: ~$ iwlist wlan0 channel 
wlan0 13 channels in total; available frequencies :
Channel 01 : 2.412 GHz
Channel 02 : 2.417 GHz
( blah blah blah blah )
Channel 11 : 2.462 GHz
Channel 12 : 2.467 GHz
Channel 13 : 2.472 GHz
Current Frequency=2.472 GHz (Channel 13)
 
 
I will try to use this command cuz I got the same problem. Thank you!
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