I've just filed a similar bug (but for maverick) and fix at 
https://bugs.launchpad.net/ubuntu/+source/linux/+bug/589342
Basically blacklist modules rt2800pci, rt2800lib, rt2x00pci, rt2x00lib and 
rt2x00usb and restart either the rt2860sta module or the computer.

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rt2860sta driver not working with network manager
https://bugs.launchpad.net/bugs/432211
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