Ralink do have GPL drivers for most of their gear, but I have no idea which model you have. Any kernel after 2.6.24 will probably work for you without you having to load any "external" drivers, as a lot of Ralink drivers went in in that version. I don't know which distribution you would need to have a recent kernel but Distrowatch will tell you.
If you are serious about using Linux, don't try to install from LiveCD's... get a "real" copy of the install CD's of a well-known brand of Linux (Redhat/Fedora, Suse, Ubuntu etc.). LiveCD's are perfect for testing, not so good for permanent installation. And without details it's almost impossible to do anything for you.
Isn't backtrack a penetration-testing distribution? I thought that was the new name for Whax/Whoppix now? The last I know they had the RT2x00 drivers built in. That's quite advanced functionality and not a "user" distro, so you're probably on your own there. You'll have less trouble just installing a normal distro, getting it to recognise your wireless (first, important step before you bother doing anything else) and then just download the individual utils you want that were on the Backtrack CD (I assume Kismet, airocrack and the like).
But to be honest, I question your need for that sort of distro/functionality if you can't get a wireless card working on Linux at all. Who you trying to hack?