I this the normal login password ? If so then you can set to log in
without one but it shouldn't interfere with setting up a wireless
connection once you are logged in.

I rebooted and entered the wallet password again and then
it was ok,I just wondered if that Daeman could be disabled permanently?

I installed Ubuntu1 on my Kubuntu 12.04 and ever since it asks for the
login password on every system startup because out says it isn't available
on (automatic) login and can't update without it. While I'd rather not have
this complication I can live with it...

You can disable Wallet in the Settings under System Settings, Account
Details, KDE wallet and uncheck the box for Enable the KDE Wallet
subsystem. In your wireless setup you can check a box to Connect
Automatically. To do that Right click on the Network Manager icon in the
system tray. Go to NetworkManager Settings. Click on your Wireless
Interface tab and choose Edit for your previously setup Wireless
connection. Then tick two boxes. Connect Automatically. System Connection.

I will disable wallet service as you described