UPDATED: this blacklist fix is not needed in Ubuntu 11.10... in fact it needs to be removed for my EeePC wireless to work with 11.10.

I found that new versions of the kernel version 2.6.38 have significant problems with wireless connection when running on EeePC 1000. My EeePc 1000 has a Ralink wireless chip - RaLink RT2860.
The driver is in the kernel but these latest kernels in Ubuntu 11.04 (and Fedora 15) will not connect to my G router.

I found a fix! Google showed me the way

add the following to    /etc/modprobe.d/blacklist.conf

# Fix the wireless in Natty (Ubuntu 11.04)
blacklist rt2800pci
blacklist rt2800lib
blacklist rt2x00pci
blacklist rt2x00lib

My EeePc now connects without issue and can reconnect after coming back from suspend.