I tried the above and still have no success.

This definitely appears to be a driver issue with the ralink drivers. I
did a build with intrepid and have the same problem. The drivers work
fine on visible networks, but will not link on hidden networks. I have
also tried wicd and had the same result. I have jaunty on my laptop
running the intel wlan driver and it has no problem with hidden
networks.

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jaunty network-manager ra2870 hidden network problem
https://bugs.launchpad.net/bugs/363348
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