I'm having quite a few problems with the rt2500usb driver in 2.4.24-rc8.
(I also tried the rt2x00 git, but there are kernel bugs already reported on this sub-forum)
As far as I can tell I am able to establish a connection with my AP in wpa-psk
tkip and wpa2-psk ccmp mode.
But I am not able to use the connection. DHCP-requests never get answered and manually setting the IP does not get me any traffic either.
I tried several wpa_suppicant and wireless-tools versions on Debian Lenny.
I am out of ideas and need your assistance please.
I attached a file with the output of wpa_supplicant -dd, messages, debug, iwconfig and ifconfig. Maybe someone get's an idea where I have not looked into yet.
I just found some posts on rt2570usb currently beeing broken.
I leave the above tread for anyone might find usefull information in the logs.
Or do I confuse the legacy with the rt2x00 one?
[code2tg32ywq]wlan0 IEEE 802.11g ESSID:"tomato\x00"
Mode:Managed Frequency:2.437 GHz Access Point: 00:12:17:01:4F:02
Bit Rate=1 Mb/s Tx-Power=27 dBm
Retry min limit:7 RTS thr:off Fragment thr=2352 B
Encryption key:3925-1917-3F96-6024-0378-0BF0-0E2C-9512-65A8-DF4A-0DC6-AE99-2F97-FB62-20E2-1AAF 
Link Quality=31/100 Signal level=-51 dBm
Rx invalid nwid:0 Rx invalid crypt:0 Rx invalid frag:0
Tx excessive retries:0 Invalid misc:0 Missed beacon:0[/code2tg32ywq]
There it is. I don't know if we share the same problem here?