LEAP works fine using Apple Airport cards. I have a TiBook with the installed Airport card that I use on my corporate network and the APs are Cisco 1200s with LEAP authentication.
Currently they proxy to an Active Directory forest via RADIUS . When I log in I need to use a password sent like the following <username/password> and all works well. I can associate and pass traffic onto the wired network no sweat. (yes, the angle brackets are necessary).
Airport cards have been able to connect to LEAP enabled networks for awhile now. Here's the
Apple Knowledge Base article.
After re-reading your post I noticed you have an Airport Extreme card. There may not be the same compatibility with those cards. I know the 802.11b Airports work fine with LEAP however.