IMAC File Sharing Slow

I recently decided to try Internet Connection Sharing from my iMAC to a nearby PS3.
I have a Netgear WNDR4500 supply connection to my MAC at around 450mbps. I'm using the ethernet to supply connection to my PS3 (PS3 has built in "G" only and with the iMAC 3 stream "N" it would stream HD better.
To test file transfer speeds, I connected a Windows 7 laptop via ethernet to the iMAC. I transferred "Iron Man" in HD from my Windows 7 desktop and the speeds were mindboggling. So much so that it is twice as fast as transferring direclty from the iMAC.
So.. here is the problem.
I have a Windows 7 desktop PC acting as a file server in the basement. I have shares setup and mounted on my iMAC using SMB. Transferring "IRON MAN" (about 8gb) takes about 10 minutes over WIFI (max 16MB/s).
When I setup ICS on the MAC and shared with a Windows laptop I transferred the same IRON MAN movie and it took a little less than 5 min (max 35MB/s).
My question is how is that possible when it is using the same WIFI adapter inside the IMAC?
Why is my IMAC getting only 16MB/s and Windows 7 laptop 35MB/s?...
I thought it may have to do with SMB shares so I mounted FTP shares instead... same thing.
I've been trying to figure this out for hours and completely stuck.
So long story short.. HELP..?

And if the iMac isn't connected to the Router, then what?
The Service Order on the Mac also gives priority to the top one, & used for Internet...
10.5.x/10.6.x/10.7.x instructions...
System Preferences>Network, click on the little gear at the bottom next to the + & - icons, (unlock lock first if locked), choose Set Service Order.
The interface that connects to the Internet should be dragged to the top of the list.

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