Alright, I've now tried 4 separate installs of BT5R2 in flavors of KDE 32 and 64bit and Gnome 32 and 64bit. All four are having the same issue with the usb wireless card.
The OS detects the card in both iwconfig and ifconfig, the dmesg shows that the OS is loading what should be the proper driver of rt2800usb.
The issue comes down to the fact the card is unable to detect any wireless network. Airmon-ng will even start up mon0 and the card goes into monitor mode, just not receiving any wireless networks, even in wicd.
Any information you may need to assist me in solving this issue would be greatly appreciated.
As troubleshooting goes for trying to solve this, I've tried the compat wireless 3.3 series drivers and had no luck with those working either, still has the same issues.
I'm running this in 4.1.18 version of VBOX. I've heard this usb card is suppose to work out of the box and also seen that several people are having issues with it as well but in my search of the forums I've yet to find anyone with issues similar to my own.