Same Problem here, it was working with 8.10 but is not working since 9.10 
(fresh install)
I managed to make it work  setting.
Pluging in the PCMCIA card lsusb will list  

Bus 004 Device 002: ID 0a5c:2101 Broadcom Corp. A-Link BlueUsbA2 Bluetooth
Bus 004 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 001 Device 010: ID 0421:0154 Nokia Mobile Phones 
Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
Bus 003 Device 002: ID 0458:003a KYE Systems Corp. (Mouse Systems) 
Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 002 Device 003: ID 046d:c315 Logitech, Inc. Classic New Touch Keyboard
Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 006 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
Bus 005 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
(nothing new)
lspci will list these 2 new entries

0c:00.0 USB Controller: NEC Corporation USB (rev 43)
0c:00.1 USB Controller: NEC Corporation USB (rev 43)

lscpcmcia

Socket 0 Bridge:        [yenta_cardbus]         (bus ID: 0000:0b:06.0)
  CardBus card -- see "lspci" for more informat


And most relevant messages with dmesg or tail -f /var/log/messages 

[76249.484118] ohci_hcd 0000:0c:00.1: irq 20, io mem 0x48001000
[76249.540174] ohci_hcd 0000:0c:00.1: USB HC reset timed out!
[76249.540191] ohci_hcd 0000:0c:00.1: can't start
[76249.540225] ohci_hcd 0000:0c:00.1: startup error -1
[76249.540239] ohci_hcd 0000:0c:00.1: USB bus 7 deregistered
[76249.540535] ohci_hcd 0000:0c:00.1: PCI INT B disabled
[76249.540542] ohci_hcd 0000:0c:00.1: init 0000:0c:00.1 fail, -1
[76249.540567] ohci_hcd: probe of 0000:0c:00.1 failed with error -1
[76256.872059] usb 5-1: new full speed USB device using ohci_hcd and address 50
[76257.013053] usb 5-1: device descriptor read/64, error -62
[76257.256049] usb 5-1: device descriptor read/64, error -62
[76257.496048] usb 5-1: new full speed USB device using ohci_hcd and address 51
[76257.636046] usb 5-1: device descriptor read/64, error -62
[76257.881055] usb 5-1: device descriptor read/64, error -62
[76258.121040] usb 5-1: new full speed USB device using ohci_hcd and address 52
[76258.529051] usb 5-1: device not accepting address 52, error -62
[76258.664060] usb 5-1: new full speed USB device using ohci_hcd and address 53
[76259.073046] usb 5-1: device not accepting address 53, error -62
[76259.073107] hub 5-0:1.0: unable to enumerate USB device on port 1

But, if I set
echo 1 > sys/module/usbcore/parameters/old_scheme_first

I will get the datacard to work! , populating

/dev/ttyUSB0
/dev/ttyUSB1

but it will disconnect so frequently, that I can't use it

And what it disconnects is the usb device not the ppp link

I have used all available kernel available with the standard upgrades in the 
repository.
currently using 

2.6.31-20-generic #57-Ubuntu SMP Mon Feb 8 09:05:19 UTC 2010 i686
GNU/Linux

is an Acer laptop Travelmate 4520 (ATI hardware)

-- 
Novatel Merlin U740 doesn't work since Ubuntu 8.10 final
https://bugs.launchpad.net/bugs/291653
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