I'm having the same problem after upgrading from Gutsy to Hardy.
Considering that this chipset is used in many "low end" wireless cards I
believe this is a problem that should be addressed before Hardy's final
release. In the current state many folks are going to be left with
nearly useless wireless cards.

As Matt S. above suggests maybe this is as simple as changing a default
setting?

2.6.24-16-generic
RaLink RT2500 802.11g Cardbus/mini-PCI (rev 01)

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[Hardy] Low bandwidth with rt2400 / rt2500 drivers
https://bugs.launchpad.net/bugs/190515
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