Range and connection issues with new WRT400N

I'm having two major problems with my brand new WRT400n. The router is located in the basement and wired to my seven-year-old desktop. Dependent on the router are three laptops located two floors above it.
My first issue is the weaker-than-expected signal strength that my laptop is receiving from the router. The best signals I'm getting for the 2.4ghz and 5ghz configurations are "Good" and "Poor", respectively, which is below the maximum rating of "Excellent". Even when I bring my laptop right beside the router, I'm struggling to achieve an "Excellent" signal strength. The speed and connection are otherwise fine but my neighbor's G router is registering an "Excellent" signal. So for a brand new N router to give weak signals is quite irritating.
The second issue is reliability. I'm consistently losing connection - both wired and wirelessly -  every hour. The connection and speed are fine the rest of the time (very quick and stable) but every 60 minutes or so I am forced to reconnect my laptop to get the signal
Any possible solutions to these two common problems? Perhaps some tinkering with the router settings? Any recommendations are welcome and much appreciated.
How does the warranty return policy for Linksys work? If the hardware is to blame  how can I send my WRT400N to Linksys? Will Linksys send me a new item?
Much thanks in advance.
Message Edited by NSX-R on 12-31-2009 08:38 PM
Message Edited by NSX-R on 12-31-2009 08:40 PM

I'm in Canada so I have a WRT400N-CA made by Cisco, which may have minute differences with the original model.
Basic Wireless Settings
Configuration View: Manual
 5GHz Wireless Settings
Network Mode: Mixed
Channel Width: 40/20MHz
Wide Channel: 159
Standard Channel: 161 - 5.805GHz
SSID Broadcast: Enabled
2.4GHz Wireless Settings
Mixed
40/20 MHz
9
11 - 2.462GHz
Enabled
Also, under the "Advanced Wireless Settings" tab, the 5GHz titles Beacon Interval, DTIM Interval, Fragmentation Threshold, and RTS Threshold have been changed to 75, 1, 2304, 2307, respectively. The 2.4GHz section has been untouched since installation of the router. Basically I searched for settings configurations on this forum and plugged in the values. My connection is slightly more reliable after using these values and installing the firmware; instead the connection dropping once every hour it drops every few hours. I always have to disconnect and re-connect my laptop connection before I can start surfing the web.
Message Edited by NSX-R on 01-02-2010 12:46 PM

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