AP541N-E-K9 keeps dropping all WLAN connections

I hope someone could shed some light on an issue we have with our AP541N-E-K9 on the latest firmware.
Our issue sounds similar to this thread:
https://supportforums.cisco.com/thread/2028334
Our AP541N-E-K9 keeps dropping all WLAN connections and will not allow us to connect via WIFI. I have to switch the unit off and on but even so sometimes it will take 10 mins for the WLAN to accept new connections. Nothing has changed on the network for months as it is a very basic scenario ie Draytek DSL Router -> Cat5e cable -> AP541N-E-K9, thats it! The AP is really only used for guest access and may have about 15 staff connected via WIFI at any one time.
Thanks

Hi Alena,
I've changed the access point to use channel 1 which seemed to work for about 5 mins and then all wireless devices have dropped off and the even log keeps showing:
Apr 30 16:39:09  info  hostapd  wlan0: IEEE 802.11 STA 40:30:04:4b:e4:1e deauthed from BSSID 64:ae:0c:ea:ca:40 reason 3 
Apr 30 16:39:09  info  hostapd  wlan0: IEEE 802.11 STA 14:74:11:76:97:24 deauthed from BSSID 64:ae:0c:ea:ca:40 reason 1 
Apr 30 16:39:09  info  hostapd  wlan0: STA 14:74:11:76:97:24 WPA: pairwise key handshake timed out (no reply was received for the first message) 
Apr 30 16:39:09  info  hostapd  The wireless client with MAC address 14:74:11:76:97:24 had an authentication failure. 
Apr 30 16:39:09  info  hostapd  wlan0: IEEE 802.11 STA 40:30:04:4b:e4:1e deauthed from BSSID 64:ae:0c:ea:ca:40 reason 1 
Apr 30 16:39:09  info  hostapd  wlan0: STA 40:30:04:4b:e4:1e WPA: pairwise key handshake timed out (no reply was received for the first message) 
Apr 30 16:39:09  info  hostapd  The wireless client with MAC address 40:30:04:4b:e4:1e had an authentication failure. 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 Assoc request from 70:d4:f2:1a:ec:3d BSSID 64:ae:0c:ea:ca:40 SSID Skyfire 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 STA 70:d4:f2:1a:ec:3d deauthed from BSSID 64:ae:0c:ea:ca:40 reason 3 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 Assoc request from 70:d4:f2:1a:ec:3d BSSID 64:ae:0c:ea:ca:40 SSID Skyfire 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 STA 14:74:11:76:97:24 associated with BSSID 64:ae:0c:ea:ca:40 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 Assoc request from 14:74:11:76:97:24 BSSID 64:ae:0c:ea:ca:40 SSID Skyfire 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 STA 14:74:11:76:97:24 deauthed from BSSID 64:ae:0c:ea:ca:40 reason 3 
Apr 30 16:39:02  info  hostapd  wlan0: IEEE 802.11 STA 40:30:04:4b:e4:1e associated with BSSID 64:ae:0c:ea:ca:40 
Apr 30 16:39:01  info  hostapd  wlan0: IEEE 802.11 Assoc request from 40:30:04:4b:e4:1e BSSID 64:ae:0c:ea:ca:40 SSID Skyfire 
Apr 30 16:39:01  info  hostapd  wlan0: IEEE 802.11 STA 40:30:04:4b:e4:1e deauthed from BSSID 64:ae:0c:ea:ca:40 reason 3 
Apr 30 16:39:01  info  hostapd  wlan0: IEEE 802.11 Assoc request from 40:30:04:4b:e4:1e BSSID 64:ae:0c:ea:ca:40 SSID Skyfire

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