I'm baffled. I specifically went out and bought a nano wifi dongle with the RTL8188CUS chipset after seeing the forum posts on configuring and getting this working. lsusb says:
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Bus 001 Device 003: ID 0bda:8176 Realtek Semiconductor Corp. RTL8188CUS 802.11n WLAN Adapter
I've gone through all the steps in there (using "make" and "make install") and yet as soon as I try debug mode for hostapd I get "l2_packet_init: socket(PF_PACKET): Operation not permitted" and "rtl871xdrv driver initialization failed". I even tried the supposedly working esrlabs image that is meant to work with the RTL8188CUS chipset and that yields exactly the same error messages.
The dongle works perfectly in client mode and connects to my wifi network without any problem whatsoever. Googling seems to return few results. Have I found a wifi dongle with the RTL8188CUS chipset that doesn't work?
It's this one: ebay usb dongle