Just to make sure I had to try this on an installed 32 bit lucid:
Linux ubu 2.6.32-24-generic #39-Ubuntu SMP Wed Jul 28 06:07:29 UTC 2010 i686 GNU/Linux
compat-wireless-2.6.36-rc5-2-s
03:00.0 Network controller: RaLink RT2860
Kernel driver in use: rt2800pci
Kernel modules: rt2800pci, rt2860sta
Just to make sure I had to try this on an installed 32 bit lucid: wireless- 2.6.36- rc5-2-s
Linux ubu 2.6.32-24-generic #39-Ubuntu SMP Wed Jul 28 06:07:29 UTC 2010 i686 GNU/Linux
compat-
03:00.0 Network controller: RaLink RT2860
Kernel driver in use: rt2800pci
Kernel modules: rt2800pci, rt2860sta
As expected this works fine (ad hoc mode).