I don't have Automatix2 installed, and was experiencing the same problem. Was, 
because I formated the computer and installed 7.10 from scratch.
Before I did an upgrade from Kubuntu 7.04 to 7.10, and was when i had the 
problem. Now i did a clean install of Ubuntu and the card works like a charm. 
Didn't even try to install Ra2500Config :)

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rt2x00.conf not found: RaConfig2500 does not work
https://bugs.launchpad.net/bugs/103573
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