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bbfa235
(Get the code!)
I can confirm that Ricardo's 2.6.32-21 kernel restored connectivity to mixed WPA/WPA2 networks, but it provides only 802.11g connections, no 802.11n, and it seems to reconnect somewhat more frequently.
As for the 2.6.33 kernel, this might be a bad idea. Lucid is a LTS version, and the kernel developers have labeled their 2.6.32 as LTS also, so if you want to stick with Lucid in the next two years, you should stay with the 32er kernel.
It is a shame that none of the paid Ubuntu developers did show up here as this bug is a severe regression from Karmic, and it breaks wireless connectivity in a lot of configurations. Imaginge, that all WLAN hotspots that use WPA have to use mixed mode to allow both older (TKIP) and newer (AES) clients, and the Ralink RT2860 is prevalent in ASUS's EeePC netbooks.