Comment 62 for bug 34902

This seems to be a bug in the rt2570 module. Since you can also use ndiswrapper to drive these cards (at least those of us on intel boxes), there is a simple workaround: disable the rt2570 module. You can compile it out, or just add these two lines to your /etc/modprobe.d/blacklist:

# use ndiswrapper instead for rt2x00 devices: rt2570 panics kernel
blacklist rt2570

With rt2570 disabled, my device works as expected, appearing as the wlan0 interface (ndiswrapper), rather than rausb0 (rt2570).