I do experience quite a similar problem, (Gutsy) but not that it doesn't
work. It just gets an total system freeze.

(Ubuntu 8.04, Kernel 2-6.24-12,WLAN Cardbus Card: Cardbus Texas Instruments PCI 
1410 rev 02, Ralink RT2561/RT61 rev B 802.11g)
Modules: 

The Freeze just happens with the card. It may last for a few minutes (by heavy 
load) or an hour, just browsing the web.
Without the card the computer works without freeze (Longest uptime so far 2 
Days, but with normal shutdown).

See also BUG:
https://bugs.launchpad.net/ubuntu/+source/linux-ubuntu-modules-2.6.24/+bug/191827

-- 
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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