Alright, tried the USB live CD and the card is still not functional. I will say I know the card works 100% when attached to the same machine in the native Host OS Win 7 64bit Ultimate as that is what I am posting to you from now while using the connection on the Alfa card.
I did notice that the dmesg on the live cd added a new line(line 94):
Not sure if that may indicate a problem to the installed versions. I am using VBox and I used an ISO (not the VMWare) and used the built in installer to install BT5R2.
[ 88.939970]usbcore: registered new interface driver rt2800usb
[ 94.876021] ADDRCONF (NETDEV_UP): wlan0: link is not ready
Chipset is the 2870/3070 according to the lsusb output.