I have the very same problem, but with the ath9k-driver (AR5008).
$ uname -a
Linux xx.xxx.xx 2.6.27-9-generic #1 SMP Thu Nov 20 21:57:00 UTC 2008 i686
GNU/Linux
$ lsb_release -rd
Description: Ubuntu 8.10
Release: 8.10
$ lspci -nnn -d 168c:0024 -vvv
04:00.0 Network controller [0280]: Atheros Communications Inc. AR5008 Wireless
Network Adapter [168c:0024] (rev 01)
Subsystem: Atheros Communications Inc. Device [168c:3072]
Control: I/O+ Mem+ BusMaster+ SpecCycle- MemWINV- VGASnoop- ParErr-
Stepping- SERR+ FastB2B- DisINTx-
Status: Cap+ 66MHz- UDF- FastB2B- ParErr- DEVSEL=fast >TAbort- <TAbort-
<MAbort- >SERR- <PERR- INTx-
Latency: 0, Cache Line Size: 64 bytes
Interrupt: pin A routed to IRQ 18
Region 0: Memory at f0200000 (64-bit, non-prefetchable) [size=64K]
Capabilities: <access denied>
Kernel driver in use: ath9k
Kernel modules: ath9k
$ iwconfig wlan0
wlan0 IEEE 802.11abgn ESSID:"BACKA1517"
Mode:Managed Frequency:2.437 GHz Access Point: 00:11:50:BA:4A:D4
Bit Rate=1 Mb/s Tx-Power=23 dBm
Retry min limit:7 RTS thr:off Fragment thr=2352 B
Power Management:off
Link Quality=101/100 Signal level:-30 dBm Noise level=-95 dBm
Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
Tx excessive retries:0 Invalid misc:0 Missed beacon:0
$ sudo iwlist wlan0 rate
wlan0 unknown bit-rate information.
Current Bit Rate=1 Mb/s
$ sudo iwconfig wlan0 rate 11M
$ sudo iwlist wlan0 rate
wlan0 unknown bit-rate information.
Current Bit Rate=1 Mb/s
$ sudo iwconfig wlan0 rate 54M
$ sudo iwlist wlan0 rate
wlan0 unknown bit-rate information.
Current Bit Rate=1 Mb/s
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rt2400pci unusably low bandwidth
https://bugs.launchpad.net/bugs/289811
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