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It does work, however, it seems wpasupplicant takes too long to get connected when booting up, so the dhcp request fails. What you need to do is add a stanza in /etc/network/interfaces in same place as wpa stanzas saying:

pre-up sleep 2

You can also just not have it run at startup then use the

ifup eth1
and
ifdown eth1

To bring it up and down.