Confirming (probably) the same bug on 2.6.20-16.
Card shows all networks with 0/100 quality:
`iwlist ra0 scan`
ra0 Scan completed :
Cell 01 - Address: 00:14:A5:8A:33:19
Mode:Managed
...
Quality:0/100 Signal level:-75 dBm Noise level:-212 dBm
It won't let me set any ESSID and just ignores all commands on iwconfig.
Behaviour started around 2.6.20-10, and still happens every time. rt2500
driver compiled from CVS works ok.
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RT2500-based wireless G network card cannot be set or reset on 2.6.20-11
https://bugs.launchpad.net/bugs/92742
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