ryan: Got the same behavior with wicd, the issue appears to be to do
with the kernel module. Compiling the legacy driver from CVS offers
support for the latest kernel's and doesn't have any problems at all....
was the only way I could get the network working.

I stopped using network-manager as it's pants for servers at the
moment.... doesn't even start the network at boot! 0.7 promises to fix a
lot of the issues... fingers crossed. :)

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[Gutsy] Network Manager freezes system when logging into a WPA WiFi network 
using ralink rt2500
https://bugs.launchpad.net/bugs/133251
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