I also am experiencing this bug in Feisty.  I followed an excellent
guide on the ubuntu forums and compiled the rt73 driver from ratech, and
still no luck.  The only setting I was able to change (from the ones
that I needed) was the channel.  Also, when I tried sudo iwlist rausb0
scanning I received an error message saying this interface does not
support scanning.

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[edgy] network-manager sees usb wifi (rt73usb) as wired net
https://bugs.launchpad.net/bugs/62535
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