I got my card today and as I promised in my previous post here the way I took making it work
first of all lets upgrade all packages available
Download latest firmware available for RT2870/RT3070 and move it to /lib/firmware
apt-get update && apt-get dist-upgrade
you can get it from Ralink or you can use the link below which is from my Dropbox
Download compat-wireless-2.6 latest snapshot uncompress and compile
I also upgraded iw this is optional you can get snapshot from iw git repo or stable build from the wireless kernel website or the snapshot I used from my Dropbox the link is below.
Backup old version of iw in case something will go wrong
uncompress compile and install the new version
mv /usr/bin/iw /usr/bin/iw.orig
for some odd reason iw have been installed in /usr/sbin/iw so I also copied it to previous location
tar xvzf iw-*.gz
just in case the previous module will be enabled sometime in the future I blacklisted it
reboot and test injection on the newly installed card
airmon-ng start wlan0
aireplay -9 mon0
Update #1: I got some problems setting monitor channels so I took a shot and updated BT to Kernel 2.6.35-rc6 and got much better reception and performance, Will update the HOWTO soon.
Update #2: Kernel 2.6.35 was released I updated my BT4 and the RT3070 driver is working very good apart from a small issue Aircrack-NG Suite has a bug which prevents monX fixed channel injection.
so no fake authentication but there is a patch/workaround available HERE
I Will update howto as soon as I finish testing everything out
Update #3: I published another HOWTO which explains how to upgrade to Kernel 2.6.35, I'm just waiting for the moderators to approve it (Hopefully) and I will add a link to it here.