From charlesreid1

Problems

After installing Kali 2.0, ran into more wireless issues. The chips that had previously been working without any problems were now broken.

Trying to do anything with packets (even go into monitor mode) would not work:

$ airodump-ng wlan0mon
ioctl(SIOCSIWMODE) failed: Device or resource busy

ARP linktype is set to 1 (Ethernet) - expected ARPHRD_IEEE80211,
ARPHRD_IEEE80211_FULL or ARPHRD_IEEE80211_PRISM instead.  Make
sure RFMON is enabled: run 'airmon-ng start wlan0mon <#>'
Sysfs injection support was not found either.

I kept seeing messages, when taking the monitor device offline, that indicated it wasn't actually monitoring, like this:

$ airmon-ng stop wlan0mon
PHY	Interface	Driver		Chipset

phy6	wlan0mon	rt2800usb	Ralink Technology, Corp. RT5370

You are trying to stop a device that isn't in monitor mode.
Doing so is a terrible idea, if you really want to do it then you
need to type 'iw wlan0mon del' yourself since it is a terrible idea.
Most likely you want to remove an interface called wlan[0-9]mon
If you feel you have reached this warning in error,
please report it.

So I knew there was a problem.

Solutions

First, determine what kind of chip:

# airmon-ng
PHY	Interface	Driver		Chipset
phy6  	wlan0mon	rt2800usb	Ralink Technology, Corp. RT5370

The chipset is RT5370. Quick web search shows MediaTek provides drivers now: http://www.mediatek.com/en/downloads1/downloads/rt8070-rt3070-rt3370-rt3572-rt5370-rt5372-rt5572-usb-usb/

Download these, unzip:

$ cd ~/Downloads/DPO_RT5572_LinuxSTA_2.6.1.3_20121022
$ ls
chips
common
include
iwpriv_usage.txt
Makefile
os
rate_ctrl
README_STA_usb
RT2870STACard.dat
RT2870STA.dat
sta
sta_ate_iwpriv_usage.txt
tools

So far so good.

Edit Config to Blacklist Coinflicting Drivers

Now edit os/linux/config.mk and add in WPA support and WPA native support.

Get ready. Get set. Restart.

Following deets from here: http://ubuntuforums.org/showthread.php?t=1949996