Iphone 3gs extreme weak wifi signal with wrt160N - suggestions?

Linksys wrt160N v3.0.00 build 010 Jan 30, 2009
iphone 3gs firmware v3.1.2
Set up network to include a few laptops with N cards, a PS3 – all ok
When it comes out of sleep mode it connects at full signal strength , then within 15 seconds drops to just the one dot
Under a dLink G router, full signal strength right up to 30 feet outside of the house
Here in condo just purchased the Linksys and standing right next to it i get a practically non existant wifi signal
Go back to parents house with g router , works perfectly.
I thought the N router is set up to be backward compatible and if need be broadcast in G mode for G devices
Is there anything I should be aware of in the settings.
I followed the basic setup - no manual fiddeling with any of the settings.

gv wrote:
1. You can check all the settings through the web interface at http://192.168.1.1/
2. As long as your iPhone maintains a connection and does not really slow down it does not matter how many bars the iPhone shows. I think the iPhone has problems calculating the correct signal strength on 802.11n routers. I have seen something similar on a dlink router. My iPhone jumped from 5 to 1 and back. Most of the time it was at 1 bar. Yet, I had perfect connections and normal internet speed. Thus, check internet functions on your iPhone. Unless you loose connections or they get extremely slow I would simply ignore it.
Problem being is that I'm not sure where to check via the web interface as to what mode it's on right out of the box.
The only way, recalling from last night's attempts, is if I go in and select the manual settings option rather than the wifi protected button, which would then allow me to enter manual settings.
Only there, would I know what it would be set at because I would obviously have to set it. I'd rather not go into changing manual settings unless absolutely necessary at this point. 
As for the iphone not displaying the signal strength correctly - I'd have to say it is, given the following download speed test results: 27, 95 , 28, 149 kbps (not the most spectacular) compared to say 9388 kbps when the iPhone initially comes out of sleep and connects to the network. The signal drops to the one dot within about 10-15 seconds approximately.
With the old dLink G router, the signal strength registered full and download speed tests supported that, same as outlined above with the weak signal and corresponding d/l results.

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