Comment 38 for bug 574307

Edward, assuming that you are still running Lucid, you could try if this bug is fixed with a newer driver module by installing:
linux-backports-modules-compat-wireless-2.6.38-lucid-generic

In general, rt2860 based hardware should work very well with new rt2800pci modules. Especially 2.6.39.

Please report the result of your test together with the corresponding output of:
uname -a
-k | grep Network --after-context 3
modinfo rt2800pci