wusb54g hostapd problems

(I will be here online ready to paste any requested logs, thanks!)

I am trying to get hostapd to work with my wusb54g (v4) to work as an AP but I can not seem to get it working
It will broadcast and other wireless devices will see it but they can't obtain ip addresses. I have also tried static ip address for the wlan device I wish to put in AP mode (wusb54g)
deauthenticated due to inactivity (timer DEAUTH/REMOVE

^ this is the error I seem to be getting. I also seem to have a problem putting it in master mode using the nl80211 driver.
-ALL THIS HAS BEEN TESTED WITH "AMD64" Kali latest, Kali latest mixed with jessie, Debian wheezy, jessie, and both Ubuntu 14.X/15.X ON LAPTOP WITH SAME RESULTS-
The reason I want to use hostapd is because fruitywifi (wireless network auditing tool) and most of its modules only work with hostapd.

echo $RANDOM is showing number >2000
And from what I have read. fruitywifi only works properly with nl80211 drivers. Unless I am loosing it and it was a false memory (which I hope).
I really dont want to use my edimax mini USB wifi adapter which only has limited capabilities/very low dBi.