I'm using Ubuntu 10.04 on EEEPC 901 (Ralink rt2860). I had this bug too.
With the new release, I also had the bug #496093 
(https://bugs.launchpad.net/ubuntu/+source/linux/+bug/496093) : no connection 
to WPA/WPA2 mixed mode wifi.
I followed the instructions in the post #190 of the previous bug, installing 
the new driver from Ralink, and now it works perfectly, both N connectivity (up 
to about 130Mb/s in my case) and WPA/WPA2 authentication (as I reported in 
comment #232 of that bug).

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rt2860 doesn't connect on 802.11n wifi
https://bugs.launchpad.net/bugs/442178
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