Hi David,
this looks like a power saving related bug in the rt2800pci driver that is 
fixed by a newer kernel that is unfortunately still only available through 
natty-proposed. Please activate proposed and update your kernel.

Please also install the most up to date version of firmware for the rt2800pci 
driver from:
http://people.canonical.com/~sforshee/lp762987/linux-firmware_1.52~lp762987v201106061858_all.deb
as long as the task of updating the linux-firmware in your ubuntu version to 
this new firmware is not "fix released" (see bug 762987).

Your hardware should now work with the in kernel rt2800pci driver. The
driver rt2860 offered by Ralink on their website does not fit the linux
wireless infrastructure (mac80211 stack) and has other limitations.

Thank you for report and please let me know whether or not rt2800pci now
works for you with the upgraded kernel and firmware. You may have to
blacklist the rt2860sta module in order to get the rt2800pci to drive
your hardware.

** Changed in: linux (Ubuntu)
       Status: Confirmed => Incomplete

** Tags added: rt2800pci
** Tags removed: staging

** Summary changed:

- Natty rt2800 kernel driver bug. on eepc 1000h
+ RT2860 [1814:0781] natty rt2800 kernel driver bug. on eepc 1000h

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https://bugs.launchpad.net/bugs/796230

Title:
  RT2860 [1814:0781] natty rt2800 kernel driver bug. on eepc 1000h

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