iwconfig works with the "linux wireless extensions". Just because a card is wireless doesn't mean it _supports_ the wireless extensions.
A quick google for 'aironet 350 "wireless extensions"' shows that you are probably using the cisco driver instead of the linux driver:
Hi all
Hi have a laptop with RH8, and cisco aironet350 pcmcia card..
I installed the driver, and the interface is named as 'eth0', the interface works well and I can configure using "proc/driver/aironet/eth0" but "iwconfig" tells "eth0 no wireless extensions".... what happens ??
Regards
Giuseppe
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