My Asus EeePC 1000HE netbook was recently upgraded from Ubuntu 10.4 to 10.10. The upgrade was smooth except for wireless which became extremely flaky.
The wireless connection would disconnect when I unplugged my laptop or woke it up when not directly connected to power. Attempting to disable and re-enable the wireless interface did not fix it. Even unloading and reloading the driver modules did not fix it. The only fix was to reboot.
The following two things are both required to fix wireless issues with the rt2860sta driver.
First, Ubuntu was loading unnecessary drivers for my wireless card. I addressed this by adding the following lines to: /etc/modprobe.d/blacklist.conf
It seems that these additional modules were interfering with the rt2860sta driver during wake up.
In addition I needed to have Ubuntu to unload and reload my wireless driver before and after going to sleep. This is done putting the following line in /etc/pm/config.d/unload_wireless
Note that the file name there is not actually important. The line just needs to be in a file in the /etc/pm/config.d/ directory.
Rebooting once after making these changes has solved the problem.