Issue with hostapd

[linux newbie]

Hi,

We are running linux_2.6.35 on our pxa255 based embedded device.

recently I am trying to bring up hostapd but so far not successful and
I need your expert advice. hostapd(0.6.10) and libnl(2.0) are the
versions I am using.

hostapd.conf is as follows:
interface=eth1
driver=nl80211
ssid=Testnet
channel=8
hw_mode=g
auth_algs=1
wpa=3
wpa_passphrase=1234567890
wpa_key_mgmt=WPA-PSK
wpa_pairwise=TKIP CCMP
rsn_pairwise=CCMP

I tried with 2 network interfaces (not simultaneously) and following
is the error messages.

1. cisco 350 pcmcia wireless card -  on running ./hostapd -dd
hostapd.conf it gives failed to create interface mon.eth1.
2. realtek 8187 usb wireless card - ELOOP: remaining socket: sock=5
eloop_data=0x4c710 user_data=(nil) handler=0x2fb34

I was using wpa_supplicant to configure the interface in two cards and
it is working fine.

Please let me know, how to debug this issue further.

Thanks