You seem to be missing a configuration file in /etc/Wireless/
I attached the README file provided by Ralink which contains a sample .dat and 
the configuration manual. Take note of the WirelessMode= parameter and see if 
you can force draft N speed by setting WirelessMode=6

The kernel used in Jaunty (2.6.28) contains an older version of ra2870sta.ko 
(1.4.0.0) in drivers/staging (read: kernel devs don't want to touch)
$ modinfo rt2870sta
filename:       
/lib/modules/2.6.28-11-generic/kernel/drivers/staging/rt2870/rt2870sta.ko
version:        1.4.0.0

BTW, karmic SHOULD have better support. The developer of rt2x00 is currently 
working on getting the rt2800usb driver to fully support this chip so the code 
can be pushed into the main 2.6.30 tree.
http://git.kernel.org/?p=linux/kernel/git/ivd/rt2x00.git;a=summary

** Attachment added: "RT2870STA.dat"
   http://launchpadlibrarian.net/26891551/RT2870STA.dat

-- 
ralink rt2870 usb wlan driver doesn't support 802.11n
https://bugs.launchpad.net/bugs/377745
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