Yes, the OpenLink WLAN driver works out-of-the-box on Pandaboard with the latest kernel releases!
For now, the only change that we need to make is to enable the wl12xx modules in the kernel configuration. But I have just sent a patch to linux-omap, so in the near future, that will not be needed anymore.
If you want to use the latest upstream kernel with your Panda, you just need to use the default omap2plus kernel configuration and manually add the wl12xx driver: