Well, I don't know if this will complicate the issue at all, but I'm
having the same problem with a card using the Ti ACX100 chipset 0_o.  If
I use NM version 0.5.1, then I have no issues and everything runs pretty
smoothly, if I use version 0.6.1 or higher, it doesn't.

Running with the option --no-daemon yields a loop of wpasupplicant
messages.  Using version 0.6.1 or higher, I'm unable to connect to any
network, not even unencrypted or WEP, it just hangs in this loop.

-- 
rt2500 driver does not implement wireless extensions correctly
https://launchpad.net/bugs/37120

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