thats indeed very odd, 802,11b kit should do better than that. Maybe you have something causing a problem with range. IIRC I read something about DECT phones and 802.11b a while back. Or maybe you have faulty kit ? I'm NOT using mine with add on antennas which I know you can get to extend the range, and am getting good coverage ( 11mbit ) around the house.

Projects like this :

http://www.communitywireless.org

http://www.locustworld.com/modules.php?set_albumName=album02&op=modload&name=gallery&file=index&include=view_album.php

Are planning on using 802.11b between houses !