It took me some time to figure how to make it work, so I decided to save it for some poor soul who would need it in future. (I am a Windows guy so this stuff is a bit alien for me).
I bought <$2 WiFi dongle for my new Orange PI PC from here: http://www.aliexpress.com/snapshot/7899695282.html?orderId=76846564349160
I am running latest "ARMBIAN jessie 3.4.112-sun8i". The chip was detected by the OS but didn't work: lsusb gave me this:
Bus 004 Device 002: ID 148f:7601 Ralink Techn