The easy solution for *this* dummy with an RT2500 based card, was to
remove Network-Manager and install Wicd. See
http://wicd.sourceforge.net. You can ad the repository or just download
the latest deb file...

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Ralink rt2400 / rt2500 / rt2570 / rt61 / rt73 do not work out of the box in 
Gutsy/Hardy
https://bugs.launchpad.net/bugs/134660
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