On some further investigation: it looks like:
(a) I must have made a stupid mistake in previous attempts
(b) Some updates had fixed it

Because as I am writing this, I am also connected via my USB-N11 to a
Wirless b/g network with WPA2-PSK; using WICD for graphical network
management/configuration.

Some facts to back up the story ;)

iwconfig:

wlan0     IEEE 802.11abgn  ESSID:"Ruisvoorn_79abgn"
          Mode:Managed  Frequency:2.412 GHz  Access Point: Not-Associated
          Tx-Power=15 dBm
          Retry  long limit:7   RTS thr:off   Fragment thr:off
          Power Management:off

wlan1     RTxx70 Wireless  ESSID:"Ruisvoorn 79"  Nickname:"RT3070STA"
          Mode:Managed  Frequency=2.442 GHz  Access Point: 00:01:E3:D4:03:40
          Bit Rate=18 Mb/s
          RTS thr:off   Fragment thr:off
          Link Quality=58/100  Signal level:-78 dBm  Noise level:-97 dBm
          Rx invalid nwid:0  Rx invalid crypt:0  Rx invalid frag:0
          Tx excessive retries:0  Invalid misc:0   Missed beacon:0

uname -ar:
Linux bartix 2.6.32-6-generic #8experimentalapw1 SMP Mon Nov 30 10:45:03 UTC 
2009 i686 GNU/Linux

So it appears this bug is now actually fixed.

-- 
Missing hardware signatures for driver/module rt2870sta
https://bugs.launchpad.net/bugs/482475
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