I have the same problem, except that the card won't work even without WEP. It 
works fine with no WEP in Breezy using the source drivers from the Ralink 
website. The card is detected but I cannot ping anything when configured using 
the Gnome networking GUI.

Thanks.
-- 
Dapper - RT61 with wep key doesn't work
https://launchpad.net/malone/bugs/35474

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