what lines?

how did you manually set the ip, with netconfig?

Please, any/all details would be greatly appreciated!

All right, these are the steps I took:

1) Installed the Atmel drivers.
2) Made sure that they showed up in lsmod (usbvnetr and uhci)

-This is about the point where I started getting that "Please insert card" message. Following steps seemed to remedy that.

3) Aliased usb-controller to uhci in whichever file that was. I think it's /etc/modules.conf
4) The lines I had previously added to /etc/rc.d/rc.modules:
/sbin/modprobe usbvnetr
/sbin/modprove uhci
I commented those out, after having previously enabled them.
5) Rebooted, drivers and USB device were detected on reboot.
Note that the device shows up in iwconfig at this point, but not ifconfig.
6) Ran dhclient eth1, was told that eth1 isn't a valid interface or something. This is fine, because it allows ifconfig to magically see eth1.
7) Used 'ifconfig eth1 192.168.1.105 up' to set the IP address of the card.
8) Used 'route add default gw <Router IP>' to set up the routing for the USB wireless NIC.
9) Ran 'iwconfig eth1 mode Managed' because I use what LinkSys dubs an Infrastructure type wireless network (as opposed to Ad-Hoc)
10) Ran 'iwconfig eth1 essid <Router SSID>' to set the ssid to connect to.
11) Just for checking, ran 'iwconfig' and saw that signal strength was acceptable and that it did indeed have the MAC address of my wireless router.
12) Pinged router to make sure it was really there and then pinged external IPs to make sure access to the rest of the world worked.
13) Edited /etc/resolv.conf to contain 'nameserver <NameServer IP>' so that DNS lookups functioned correctly.

Hopefully you'll be able to get yours working. As a total Linux newbie, I'm still kind of lost as to exactly how whatever I did fixed things, but it did. Also, I have to repeat all of the commands every time I reboot the machine, but that's going to be an easy enough fix. If you have further troubles, I'll be happy to try and help if I encountered them during my bout with the USB wireless NIC.

Thanks. I seem to have improved my probelm. I can now see the router's mac adress and my ssid. Then, I started having one hell of a hard time. Turns out my dad was moving cables around and put the cable into uplink insted. Woops!

w00t!
 

YES! Finally, it works! I am using it to write this message! Thanks everybody! Once I complied the drivers and added the files to /etc/moudules.conf to make it start at boot, all I had to do was put my SSID in using lvnet and then dhcpcd eth1, and voila!

Thanks again!
:D

Sweet...glad you got it working--both of you.:D

Thanks for all your help!

I had similar problems with the WUSB11. I described what I did to solve it here

http://www.stanford.edu/~hsurden/linuxnotes.html