I have this card too. Under Karmic I were able to load the wifi by using 
"rfkill unblock wifi". Now I updated to lucid amd64.
I don't have the option to start the wfi in the networ-manager anymore.
iwconfig is giving me:
wlan0     IEEE 802.11bg  ESSID:off/any  
          Mode:Managed  Access Point: Not-Associated   Tx-Power=off   
          Retry  long limit:7   RTS thr:off   Fragment thr:off
          Power Management:off

and lspci is giving me:
04:09.0 Network controller: RaLink RT2561/RT61 rev B 802.11g

rfkill unblock wifi doesn't work anymore.

Fred

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failed to allocate wireless device
https://bugs.launchpad.net/bugs/404596
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