Is there anything new on this issue? Did you resolve it somehow?
I have the same problem on a laptop with a Ralink Chip that uses rt2500pci. 
Connection is limited to 1 Mb/s, is slow and the signalstrength is weak.
This is with the driver from the 2.6.24-17-generic Kernel.
I tried the daily CVS from 
http://rt2x00.serialmonkey.com/wiki/index.php?title=Downloads dated to May 7. 
but I don't get any connection at all.
Any ideas for a solution?

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WiFi card is slow in 8.04 beta 5
https://bugs.launchpad.net/bugs/215529
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