I have never been able to connect but I think that is due to my router
expecting a 64bit WEP key:

"every time I try to connect it asks for the passkey, which I input, it
then has the icon of the wireless trying to connect in the tool bar, it
tries to connect for a few minutes until it asks for the passkey again,
and it goes in an endless loop like that."

ditto.
The dmsg log matches.
Of all the rta2860sta module related bugs yours matches the behavior I see.

-- 
new Wireless Doesn't Connect! rt2860
https://bugs.launchpad.net/bugs/574307
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