I have the same issue with a Linksys WMP54G connecting to a WPA access
point using rt61 driver on Ubuntu Feisty.

Installing the latest serialmonkey version of rt61 appears to eliminate
the lock-up issue (i.e. it looks like they have this problem fixed).
However (and this could well be a serialmonkey, not Ubuntu issue) it
ONLY works if I first connect to the AP with NO security, then take the
connection (and router) down and back up with WPA enabled.  Connecting
using WPA without first connecting in unsecure mode fails (iwlist scan
can see it, but signal quality is 0/100, and dhcp fails).

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Ralink Wireless legacy drivers (rt2500 rt61 rt73 rt2570) USB/PCMCIA/PCI hangs PC
https://bugs.launchpad.net/bugs/34902
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