Oops. Thats what I get for not reading it properly. It could just be that you've got lots of APs nearby and no channel is good?

Thinking about it, somebody I know had similar problems where it would show a good connection but the speed was crap. He tried everything and in the end he tried swapping the Netgear AP with his old Belkin and the speed went back to what it should have been. The reason why he got the Netgear in the first place was because the Belkin kept overheating and crashing. I think he replaced them both with a WRT54GS in the end.