The last few days I've followed the proceedings in this thread.
I experiences the same problems and I feel urged to participate in solving this 
matter, so may I join this discussion?

I have aRT2870 based WLAN stick too. It identifies itself as: 148f:3070
Ralink Technology, Corp. RT2870/RT3070 Wireless Adapter. This adapter
stopped working after kernel 2.6.21-32 and the mean time I've tried to
get it to do its job with almost all kernels released but to no avail.
The most recent one I've tried is 2.6.38-02063808 and that's a failure
too for now. Of course I use my Ubuntu Server all the time so it's still
on kernel 2.6.21-32.

I tried all solutions suggested here, but so far none of them makes any
difference. That's why I want to help here and I'm willing to test
things if I'm requested too. I'm not quite sure where to start so first
I'll state the results of lsmod | grep rt:

xt_multiport            2876  2
parport_pc             32228  0
x_tables               16544  8 
xt_multiport,xt_limit,ipt_LOG,xt_recent,xt_state,xt_tcpudp,iptable_nat,ip_tables
rt2800usb              37372  0
rt2x00usb              11548  1 rt2800usb
rt2x00lib              29788  2 rt2800usb,rt2x00usb
led_class               4096  1 rt2x00lib
input_polldev           3716  1 rt2x00lib
mac80211              181140  2 rt2x00usb,rt2x00lib
rt2870sta             488948  1
cfg80211               93052  2 rt2x00lib,mac80211
crc_ccitt               1852  1 rt2800usb
agpgart                35020  1 sis_agp
parport                35340  3 parport_pc,ppdev,lp

Just for testing I've blocked rt2870sta in
/etc/modprobe.d/blacklist.conf but somehow it does load that driver
according to the output above.

I'll await your response for what to do next.

Thanks for making the effort to solve the problems with these types of
WLAN USB sticks.

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https://bugs.launchpad.net/bugs/762987

Title:
  RT2870 WLAN Stick (D-Link DWA 140) not working. firmware does not
  support detected chipset

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