If you really are using rt2500, then the ndiswrapper solution should work.
I have it working here with a Linksys WUSB56G v4 using the XP Windows driver
from linksys and I'm connecting to a WPA network.  Seems like I tried
everything else and nothing would work (connecting to encrypted networks
anyhow).

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Ralink rt2400 / rt2500 / rt2570 / rt61 / rt73 do not work out of the box in 
Gutsy/Hardy
https://bugs.launchpad.net/bugs/134660
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