I am still experiencing this bug in karmic.

Today I tried maverick (running from a USB stick), unfortunately the problem is 
still present. First the connection is fine (1.0 MB/s in my case), later the 
speed drops to 64 kB/s - 100 kB/s. (I'm testing the speed with 'scp'.) Then I 
tried:
# iwconfig wlan0 power off
# iwconfig wlan0 rate 54M fixed

Then iwconfig will claim the speed is 54M, but actually it's much
slower. As I wrote earlier, my workaround is right-click the
NetworkManager applet on the Ubuntu desktop, deselect "Enable Wireless",
wait 2 seconds, then enable it again. Then the speed is good again for 1
minute to 1 day. (varies)

ubu...@ubuntu:~$ uname -a
Linux ubuntu 2.6.35-22-generic #33-Ubuntu SMP Sun Sep 19 20:34:50 UTC 2010 i686 
GNU/Linux

ubu...@ubuntu:~$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 10.10
Release:        10.10
Codename:       maverick

ubu...@ubuntu:~$ modinfo rt2500pci
filename:       
/lib/modules/2.6.35-22-generic/kernel/drivers/net/wireless/rt2x00/rt2500pci.ko
license:        GPL
description:    Ralink RT2500 PCI & PCMCIA Wireless LAN driver.
version:        2.3.0
author:         http://rt2x00.serialmonkey.com
srcversion:     A92C9A44EDA76B8F1D30911
alias:          pci:v00001814d00000201sv*sd*bc*sc*i*
depends:        rt2x00pci,rt2x00lib,eeprom_93cx6
vermagic:       2.6.35-22-generic SMP mod_unload modversions 686

-- 
[Hardy][Intrepid] Low bandwidth with rt2400 / rt2500 drivers
https://bugs.launchpad.net/bugs/190515
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