Lag Spikes with WRT54G router

I've recently noticed that while playing numerous MMO games (Aion, Champions Online, and World of Warcraft), I've been getting lag spikes for the last few months, at first I thought it was because Aion and Champions were in beta stages, but I kept getting them in World of Warcraft, when I went back. 
I bought a new WUSB600N USB adapter, because I built a new system and my old PCI card does not fit, nor does it nativly support vista or Vista 64 (which I am using).  So I am not sure if it is the USB adapter, or my old WRT54G router.  My fiancee is also having the same problem with her wireless G adapter in her laptop, so I bought her the WPC600N adapter and is still getting the same issue.  When I connect via a cable I seem to be okay.
I also have all the correct ports forwarded, for World of Warcraft.
Now my question is, is it because I am trying to game with a wireless connection, or is it because of my router?
I was thinking of buying the WRT160N to see if it will fix the problem.  Is there a better solution?
I am only about 10 feet from my router,  so distance is not an issue.
System Specs:
Intel I7 920
Intel DX58SO motherboard
6 GB memory
2X BFG GTX275OC (running in SLI)
Creative X-FI Fata1ity PCI-E
WUSB600N USB adapter
WRT54G wireless router.
any suggestions would be helpful.

Try to adjust the wireless settings on your router...
Open an Internet Explorer browser page on your wired computer(desktop).In the address bar type - 192.168.1.1 and press Enter...Leave Username blank & in Password use admin in lower case...
For Wireless Settings, please do the following : -
Click on the Wireless tab
 (For 2.4 GHz)
- Here select manual configuration...Wireless Network mode should be mixed...
- Provide a unique name in the Wireless Network Name (SSID) box in order to differentiate your network from your neighbours network...
- Set the Radio Band to Wide-40MHz and change the Wide channel to 9 and Standard Channel to 11-2.462GHz...Wireless SSID broadcast should be Enabled and then click on save settings...
Please make a note of Wireless Network Name (SSID) as this is the Network Identifier...
 (For 5 GHz)
Wireless Network mode should be mixed...
-Provide a unique name in the Wireless Network Name (SSID) box in order to differentiate your network from your neighbours network.
Set the Radio Band to Wide-40MHz and change the Wide channel to159 and Standard Channel to 161-5.805GHz...
For Wireless Security : -
Click on the Sub tab under Wireless > Wireless Security...
Change the Wireless security mode to WPA, For Encryption, select AES...For Passphrase input your desired WPA Key. For example , MySecretKey , This will serve as your network key whenever you connect to your wireless network. Do NOT give this key to anyone.
NOTE : Passphrase should be more that 8 characters...
Click on Advanced Wireless Settings
Change the Beacon Interval to 75 >>Change the Fragmentation Threshold to 2304 Change the RTS Threshold to 2307 >>Click on "Save Settings"...
Now see if you can locate your Wireless Network and attempt to connect...

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