Passeli:
lshw reports your device is 11Mbs, rt2500 devices are 54Mbs.
Furthermore, the reason why the driver isn't working is because even lspci 
cannot detect your card.
I don't know why lshw does report the card, but lspci doesn't, but the only 
thing I can conclude from this, is that the driver isn't to blame for this 
since the problem is in the hardware.
Is the device correctly plugged in? Aren't there irq conflicts?
Does your log indicate anything regarding hardware problems?

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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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