Ubuntu 10.10 with RaLink RT2561/RT61 pci wifi

I installed a new installation of Ubuntu server 10.10 today, and had to spend two hours getting my wireless card to work. As I had to scour half the internet for tips before I finally had a working configuration, I'll share my findings here to prevent head-aches for other people.

Card: RaLink RT2561/RT61 pci wifi (802.11g) card (D-link DWL-G510)
Ubuntu 10.10 server x86 running 2.6.35-25-generic-pae kernel
Connection will be setup through WPA2 to a normal access point (with DHCP)

Windows 7 as Wifi AP ?

Just came across a really interesting article which claims the full version (non beta/RC or starter versions) of Windows 7 can turn your wifi adapter into a wireless AP!