EAP-MD5 support issue with Atheros APs

Hi all,
This may seem in what I feel as a strange issue. Let me outline the issue as under:
I am trying to configure Wireless security based on the EAP-MD5 model. My network consists of: (1) Funk Odyssey Supplicant which supports EAP-MD5 (2) Atheros AP43/AP48 as the Access Point (3) Microsoft IAS as the RADIUS server configured for EAP-MD5 Authentication.
Configuration wise everything is proper but the Funk Odyssey utility reports Authentication failure! Radius logs reveals success as depicted in the Event Viewer. An appropriate sniffer capture on the wired side reveals RADIUS Access Accept(which encapsulates the EAP-Success Message[Code 3]) is being forwarded by IAS to the Atheros AP. Wireless sniffer capture reveals that the AP seems to convert this into EAP-Failure(Code 4)!!
I have tried with 2 different Atheros APs but it's the same issue. Could it be that the Atheros AP doesn't support EAP-MD5?? Please help
P.S. : The Atheros AP is configured for WPA - EAP Authentication