Problem is not fixed for me in Intrepid RC1. I tried it this time with
no wireless security at all.
$ iwconfig wlan0
wlan0 IEEE 802.11bg ESSID:"******"
Mode:Managed Frequency:2.412 GHz Access Point: **:**:**:**:**
Bit Rate=1 Mb/s Tx-Power=27 dBm
Retry min limit:7 RTS thr:off Fragment thr=2352 B
Power Management:off
Link Quality=51/100 Signal level:-53 dBm
Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
Tx excessive retries:0 Invalid misc:0 Missed beacon:0
$ modinfo rt2500pci
filename:
/lib/modules/2.6.27-7-generic/kernel/drivers/net/wireless/rt2x00/rt2500pci.ko
license: GPL
description: Ralink RT2500 PCI & PCMCIA Wireless LAN driver.
version: 2.1.8
author: http://rt2x00.serialmonkey.com
srcversion: 8A2D79D2F9BCB71EE9923B1
alias: pci:v00001814d00000201sv*sd*bc*sc*i*
depends: rt2x00lib,rt2x00pci,eeprom_93cx6
vermagic: 2.6.27-7-generic SMP mod_unload modversions 586
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rt2500pci driver connects with max speed of 1Mb/s
https://bugs.launchpad.net/bugs/248233
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