Had the same problems when testing with oneiric alpha-1 live.
Linux ubuntu 2.6.39-3-generic #10-Ubuntu SMP Sat May 28 05:47:08 UTC 2011 i686 
athlon i386 GNU/Linux

Ping to my gateway gives high latency, and connection is low quality :

PING 192.168.1.1 (192.168.1.1) 56(84) bytes of data.
64 bytes from 192.168.1.1: icmp_req=1 ttl=64 time=1250 ms
64 bytes from 192.168.1.1: icmp_req=2 ttl=64 time=242 ms
64 bytes from 192.168.1.1: icmp_req=3 ttl=64 time=5.75 ms

After disabling power save mode:

PING 192.168.1.1 (192.168.1.1) 56(84) bytes of data.
64 bytes from 192.168.1.1: icmp_req=1 ttl=64 time=1.39 ms
64 bytes from 192.168.1.1: icmp_req=2 ttl=64 time=1.25 ms
64 bytes from 192.168.1.1: icmp_req=3 ttl=64 time=1.38 ms

lsmod | grep rt:

rt2800usb              17907  0 
rt2800lib              48676  1 rt2800usb
crc_ccitt              12595  2 rt2870sta,rt2800lib
rt2x00usb              19798  1 rt2800usb
rt2x00lib              47439  3 rt2800usb,rt2800lib,rt2x00usb
mac80211              267622  3 rt2800lib,rt2x00usb,rt2x00lib

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https://bugs.launchpad.net/bugs/779932

Title:
  Wrong driver loaded for wireless usb adapter DWL-G122 (rev.E)

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