Linksys E2000 drops connection

Hey everyone, I have had my Linksys E2000 for a few months now. But up until now, I havent used the wireless settings too much, I have had everything hardwired into the router. 
I decided last week to set up the wireless settings so that I can connect my PC and Xbox's wirelessly. They are all within about 10 feet from the router. The connection is fine for a while, but after a few days it begins to degrade. I opened up a command line and pinged 192.168.1.1 to see results of 150+ms on my PC wirelessly. Wired it was about 2ms.
All of my devices have a static IP address on the LAN, and one of my Xbox's is in the DMZ, still dropping connection often. I moved my PC and DMZ Xbox to another room on the second floor of my house and its still about the same speed.
I set my old wireless G router up and its working fine......but I use my PC as a home media server, so 54mbps is very slow for media that needs upwards of 100+mbps. My ISP subscription is about 12mbps, which I get all 12 of those on a hardwired machine, but a wireless on the E2000 is lucky to get 3 of those.
I have everything set up correctly in the router settings, MTU of 1500, with only Wireless N broadcasting. I also noticed that the E2000 will drop connection much faster if the SSID is hidden.My old Wireless G router is getting pings of less then 1ms wirelessly.
I have the Xbox S models and my wireless adapter is a Edimax wireless N adapter. Could this be a defective router? Any options to try to fix the problems?

I'm experiencing similar problems as well.  I'm going to try these settings out and see what happens.  Reseting my router fixes the problem, but I don't want to have to do this once a week or more.  My WRT54GS worked great, but I wanted the speed that N had to offer.   Its rather annoying because I hate having to go upstairs every time I need to reset my router in order to get an IP address on my wireless laptop downstairs.
This seems to be an apparent problem among Wireless-N in general.  D-Link, Linksys and Netgear all seem to have problems with dropped wireless-N connections on their routers too. Read the reviews on Amazon & Newegg for yourself.

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