Ralink WiFi USB on Raspbian

Hey Crew,
I have a RPi2 running Raspbian and I'm trying to connect to my wireless using a Ralink 5370L USB dongle. I got the drivers via apt-get install firmware-ralink, and I see the device is using the rt2800 driver. Ifconfig doesn't show the wlan0 interface, but iwconfig sees it. Yet when I try to bring it up with ifconfig wlan0 up or ifup wlan0, errors are thrown like the Device is busy. I've tried blacklisting rt2800, a fresh install, removing firmware-ralink, and the WICD gui without any luck. Any help would be appreciated, thanks!

Wlan0 is seen when I run ifconfig. After configuring wpa_supplicant.conf, I tired to bring the interface down and back up to prompt connection to the AP, but after bringing it up I get "SIOCSIFFLAGS: Device or resource busy." I run dmesg and get continuous error of "ieee80211 phy0: rt2x00usb_vendor_request: Error - Vendor Request 0x07 failed for offset 0x1000 with error -110." PLEASE CAN ANYONE HELP! Thanks