IMac 5k causing havoc with my wifi

OK, so this is strange.  First of all I'm not a mac newbie.  I've been using mac devices since the 80s. That being said, I don't know WHY everything works, I just love that Apple products Just Work, until now...
Ever since purchasing the new iMac 5K and updating my other two laptops to Yosemite my network has not worked.  Several calls to apple support only resulted in this:   Fix the network temporarily by unplugging the modem and unplugging the router and booting them both back up.  My network runs for a an hour or two and then suddenly its down.  And my 3 year old is screaming because Despicable Me is "Broken"
Things are just weird since the updates:
1) non apple products (and the new iMac 5k) still connect to wifi when my network is "down".  my iPhone, iPad Mini, Apple TV, macbook pro retina, macbook air all  refuse to connect to the network, requesting over and over again to input the correct password this time....  But my OnePlus One - android phone connects just fine.  I borrowed a friends chromebook to test out and it connected seamlessly.  And my xbox 360 seems to connect as well.
2) we discovered by accident that if we are in close proximity of the new iMac 5k (i assume close enough for Hand off or Airdrop) suddenly we are able to connect to the network.  We are able to remain connected for some time even after we have moved away from the iMac but eventually we are kicked off (1-2 hours)
3) Most problems disappear when the iMac is turned off completely.  The network does intermittently cut in and out for a minute or so at a time every few hours or so, usually right in the middle of Despicable Me
4) Turning off wifi on the iMac 5k and using ethernet does not seem to work either.  several hours later the network went down.
for some background, my network consists of Cox Cable supplied Docsis 3.0 modem (combined with voice over IP telephone) connected to Apple Airport Extreme (new version).  I have the older version Airport Extreme connected via Ethernet being used to extend the network.
I understand there is a beta update pending (10.10.2) that is supposed to address wifi issues but I wanted some input for my situation.
Anybody out there experience this or similar issues?

Please read the warranty paperwork that came w/your computer.
You have 14 days to return the computer w/no questions asked.
You have 90 days of FREE phone tech support on top of your standard 1 year warranty unless you also purchased AppleCare which gives you an additional 2 years of coverage plus FREE phone support.
Strongly suggest that you take FULL advantage of the above before it runs out.  Let Apple deal w/the problems & your concerns. It's what you paid them to do.

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