I followed your instructions above (both packages) on a fresh install of Lucid and the device does NOT work for me.  You did not mention if you were using WPA2 security or were unsecured.  Here is the dialog:

ay 11 15:58:24 HOME AptDaemon: INFO: Initializing daemon
May 11 15:58:33 HOME kernel: [   85.596075] usb 1-2: new high speed USB device using ehci_hcd and address 2
May 11 15:58:33 HOME kernel: [   85.746569] usb 1-2: configuration #1 chosen from 1 choice
May 11 15:58:33 HOME kernel: [   85.809905] rt2870sta: module is from the staging directory, the quality is unknown, you have been warned.
May 11 15:58:33 HOME kernel: [   85.826689] rtusb init --->
May 11 15:58:33 HOME kernel: [   85.827032] 
May 11 15:58:33 HOME kernel: [   85.827035] 
May 11 15:58:33 HOME kernel: [   85.827037] === pAd = fd6b4000, size = 566748 ===
May 11 15:58:33 HOME kernel: [   85.827039] 
May 11 15:58:33 HOME kernel: [   85.827043] <-- RTMPAllocAdapterBlock, Status=0
May 11 15:58:33 HOME kernel: [   85.829835] usbcore: registered new interface driver rt2870
May 11 15:58:33 HOME kernel: [   85.901767] cfg80211: Calling CRDA to update world regulatory domain
May 11 15:58:33 HOME NetworkManager:    SCPlugin-Ifupdown: devices added (path: /sys/devices/pci0000:00/0000:00:02.1/usb1/1-2/net/wlan0, iface: wlan0)
May 11 15:58:33 HOME NetworkManager:    SCPlugin-Ifupdown: device added (path: /sys/devices/pci0000:00/0000:00:02.1/usb1/1-2/net/wlan0, iface: wlan0): no ifupdown configuration found.
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): driver does not support SSID scans (scan_capa 0x00).
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): new 802.11 WiFi device (driver: 'usb')
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): exported as /org/freedesktop/NetworkManager/Devices/1
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): now managed
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): device state change: 1 -> 2 (reason 2)
May 11 15:58:33 HOME NetworkManager: <info>  (wlan0): bringing up device.
May 11 15:58:33 HOME kernel: [   86.004720] cfg80211: World regulatory domain updated:
May 11 15:58:33 HOME kernel: [   86.004727]     (start_freq - end_freq @ bandwidth), (max_antenna_gain, max_eirp)
May 11 15:58:33 HOME kernel: [   86.004735]     (2402000 KHz - 2472000 KHz @ 40000 KHz), (300 mBi, 2000 mBm)
May 11 15:58:33 HOME kernel: [   86.004742]     (2457000 KHz - 2482000 KHz @ 20000 KHz), (300 mBi, 2000 mBm)
May 11 15:58:33 HOME kernel: [   86.004749]     (2474000 KHz - 2494000 KHz @ 20000 KHz), (300 mBi, 2000 mBm)
May 11 15:58:33 HOME kernel: [   86.004755]     (5170000 KHz - 5250000 KHz @ 40000 KHz), (300 mBi, 2000 mBm)
May 11 15:58:33 HOME kernel: [   86.004761]     (5735000 KHz - 5835000 KHz @ 40000 KHz), (300 mBi, 2000 mBm)
May 11 15:58:34 HOME kernel: [   86.199137] <-- RTMPAllocTxRxRingMemory, Status=0
May 11 15:58:34 HOME kernel: [   86.201054] -->RTUSBVenderReset
May 11 15:58:34 HOME kernel: [   86.201183] <--RTUSBVenderReset
May 11 15:58:34 HOME kernel: [   86.478209] --> Error 2 opening /etc/Wireless/RT3070STA/RT3070STA.dat
May 11 15:58:34 HOME kernel: [   86.478217] 1. Phy Mode = 0
May 11 15:58:34 HOME kernel: [   86.478221] 2. Phy Mode = 0
May 11 15:58:34 HOME kernel: [   86.507915] RTMPSetPhyMode: channel is out of range, use first channel=1 
May 11 15:58:34 HOME kernel: [   86.517912] 3. Phy Mode = 0
May 11 15:58:34 HOME kernel: [   86.522538] MCS Set = 00 00 00 00 00
May 11 15:58:34 HOME NetworkManager: <info>  (wlan0): preparing device.
May 11 15:58:34 HOME NetworkManager: <info>  (wlan0): deactivating device (reason: 2).
May 11 15:58:34 HOME kernel: [   86.572051] <==== RTMPInitialize, Status=0
May 11 15:58:34 HOME kernel: [   86.573780] 0x1300 = 00073200
May 11 15:58:34 HOME NetworkManager: <info>  (wlan0): supplicant interface state:  starting -> ready
May 11 15:58:34 HOME NetworkManager: <info>  (wlan0): device state change: 2 -> 3 (reason 42)
May 11 15:58:34 HOME kernel: [   86.659722] usbcore: registered new interface driver rt2800usb
May 11 15:58:35 HOME avahi-daemon[859]: Registering new address record for fe80::223:69ff:fe0d:4689 on wlan0.*.
May 11 15:58:39 HOME kernel: [   91.642937] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 15:58:40 HOME kernel: [   92.871522] DRS: unkown mode,default use 11N 1S AP 
May 11 15:58:40 HOME wpa_supplicant[916]: No network configuration found for the current AP
May 11 15:58:40 HOME kernel: [   92.871532] DRS: unkown mode (SupRateLen=0, ExtRateLen=0, MCSSet[0]=0x0, MCSSet[1]=0x0)
May 11 15:58:40 HOME wpa_supplicant[916]: CTRL-EVENT-DISCONNECTED - Disconnect event - remove keys
May 11 15:58:44 HOME wpa_supplicant[916]: last message repeated 2 times
May 11 15:58:44 HOME kernel: [   96.588031] wlan0: no IPv6 routers present
May 11 15:59:00 HOME kernel: [  112.029192] ===>rt_ioctl_giwscan. 2(2) BSS returned, data->length = 240
May 11 15:59:30 HOME kernel: [  142.029917] ===>rt_ioctl_giwscan. 2(2) BSS returned, data->length = 240
May 11 16:00:10 HOME kernel: [  182.030096] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 16:01:00 HOME kernel: [  232.028102] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 16:01:24 HOME NetworkManager: user_connection_updated_cb: assertion `old_connection != NULL' failed
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) starting connection 'Auto JASPER'
May 11 16:01:24 HOME NetworkManager: <info>  (wlan0): device state change: 3 -> 4 (reason 0)
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) scheduled...
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) started...
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) scheduled...
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) complete.
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) starting...
May 11 16:01:24 HOME NetworkManager: <info>  (wlan0): device state change: 4 -> 5 (reason 0)
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0/wireless): access point 'Auto JASPER' has security, but secrets are required.
May 11 16:01:24 HOME NetworkManager: <info>  (wlan0): device state change: 5 -> 6 (reason 0)
May 11 16:01:24 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) complete.
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) scheduled...
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) started...
May 11 16:01:51 HOME NetworkManager: <info>  (wlan0): device state change: 6 -> 4 (reason 0)
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) scheduled...
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 1 of 5 (Device Prepare) complete.
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) starting...
May 11 16:01:51 HOME NetworkManager: <info>  (wlan0): device state change: 4 -> 5 (reason 0)
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0/wireless): connection 'Auto JASPER' has security, and secrets exist.  No new secrets needed.
May 11 16:01:51 HOME NetworkManager: <info>  Config: added 'ssid' value 'JASPER'
May 11 16:01:51 HOME NetworkManager: <info>  Config: added 'scan_ssid' value '1'
May 11 16:01:51 HOME NetworkManager: <info>  Config: added 'key_mgmt' value 'WPA-PSK'
May 11 16:01:51 HOME NetworkManager: <info>  Config: added 'psk' value '<omitted>'
May 11 16:01:51 HOME NetworkManager: nm_setting_802_1x_get_pkcs11_engine_path: assertion `NM_IS_SETTING_802_1X (setting)' failed
May 11 16:01:51 HOME NetworkManager: nm_setting_802_1x_get_pkcs11_module_path: assertion `NM_IS_SETTING_802_1X (setting)' failed
May 11 16:01:51 HOME NetworkManager: <info>  Activation (wlan0) Stage 2 of 5 (Device Configure) complete.
May 11 16:01:51 HOME NetworkManager: <info>  Config: set interface ap_scan to 1
May 11 16:01:51 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  inactive -> scanning
May 11 16:01:56 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:01:56 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:01:56 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:01:56 HOME kernel: [  288.640925] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 16:01:56 HOME kernel: [  288.641274] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:01 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:01 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:01 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:06 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:02:06 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:02:06 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:02:06 HOME kernel: [  298.649475] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 16:02:06 HOME kernel: [  298.649798] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:11 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:11 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:11 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:16 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:02:16 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:02:16 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:02:16 HOME kernel: [  308.657985] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 342
May 11 16:02:16 HOME kernel: [  308.658311] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:21 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:21 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:21 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:26 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:02:26 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:02:26 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:02:26 HOME kernel: [  318.668823] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 383
May 11 16:02:26 HOME kernel: [  318.669147] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:31 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:31 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:31 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:32 HOME NetworkManager: <info>  wlan0: link timed out.
May 11 16:02:36 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:02:36 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:02:36 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:02:36 HOME kernel: [  328.677471] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 383
May 11 16:02:36 HOME kernel: [  328.677795] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:41 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:41 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:41 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:46 HOME wpa_supplicant[916]: Trying to associate with 00:1a:70:41:c7:7f (SSID='JASPER' freq=2437 MHz)
May 11 16:02:46 HOME wpa_supplicant[916]: Association request to the driver failed
May 11 16:02:46 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> associating
May 11 16:02:46 HOME kernel: [  338.684408] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 383
May 11 16:02:46 HOME kernel: [  338.684728] ==>rt_ioctl_siwfreq::SIOCSIWFREQ[cmd=0x8b04] (Channel=6)
May 11 16:02:51 HOME wpa_supplicant[916]: Authentication with 00:1a:70:41:c7:7f timed out.
May 11 16:02:51 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  associating -> disconnected
May 11 16:02:51 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  disconnected -> scanning
May 11 16:02:52 HOME NetworkManager: <info>  Activation (wlan0/wireless): association took too long.
May 11 16:02:52 HOME NetworkManager: <info>  (wlan0): device state change: 5 -> 6 (reason 0)
May 11 16:02:52 HOME NetworkManager: <info>  Activation (wlan0/wireless): asking for new secrets
May 11 16:02:52 HOME NetworkManager: <info>  (wlan0): supplicant connection state:  scanning -> disconnected
May 11 16:02:56 HOME NetworkManager: <info>  (wlan0): device state change: 6 -> 9 (reason 7)
May 11 16:02:56 HOME NetworkManager: <info>  Activation (wlan0) failed for access point (JASPER)
May 11 16:02:56 HOME NetworkManager: <info>  Marking connection 'Auto JASPER' invalid.
May 11 16:02:56 HOME NetworkManager: <info>  Activation (wlan0) failed.
May 11 16:02:56 HOME NetworkManager: <info>  (wlan0): device state change: 9 -> 3 (reason 0)
May 11 16:02:56 HOME NetworkManager: <info>  (wlan0): deactivating device (reason: 0).
May 11 16:02:56 HOME kernel: [  348.690638] ===>rt_ioctl_giwscan. 2(2) BSS returned, data->length = 240
May 11 16:03:25 HOME AptDaemon: INFO: Quiting due to inactivity
May 11 16:03:25 HOME AptDaemon: INFO: Shutdown was requested
May 11 16:04:00 HOME kernel: [  412.030170] ===>rt_ioctl_giwscan. 3(3) BSS returned, data->length = 383