Slow wifi speeds with imac 3.06ghz

Hello,
So I just got my new imac 3.06ghz with 2gb of ram and I have noticed the internet speed when using wifi is extremely slow. Currently I am using a linksys wrt54G router with time warner cable. If I have my old 1st gen macbook side by side with my imac the macbook shows full signal strength on the airport and the imac shows only a few bars. If I run a speed test with them both the macbook downloads at around 1.5mb and the imac gets a blazing 51k.
Weird symptom on the imac is the blue status bar starts to load in safari, it gets about 3/4 through and then freezes and sits at 3/4 done for a few minutes. During this time images and text on the site slowly start to show up, just like if you were back on a dialup connection.
Troubleshooting that I have done:
reset smc and pram
erase and install
downloaded all available software updates
changed the channel that the router is broadcasting on
- router security is using wep and mixed b&g
- other devices that work fast with a wireless connection on the router are an iphone, xbox 360 and nintendo ds
* even tried testing with win xp and bootcamp but I haven't figured out how to get windows to recognize the wireless card yet
So i'm at the point where I'm assuming this is a hardware issue, maybe the airport antenna?
Any other suggestions?

Everyone on here that is experiencing these wifi issues with their new iMacs NEEDS to call Apple and get this elevated. I'm out of the country right now but I'm in the middle of troubleshooting this issue with Apple. I've spoken with several techs and most don't read this forum and are unaware of any widespread wifi issue with the iMacs. When I return home I will be continuing my troubleshooting with Apple on this issue. My symptoms are very similar to the ones posted in several recent threads on this issue. So far it is pointing to a software problem but I can't rule out the hardware yet. However using BootCamp I can launch Windows Vista on the same machine and surf the internet at high speed through the same Time Capsule. Also all other PC's on my home network are connecting to the Time Capsule at high speed with no hiccups. I didn't notice the problem until all the updates were loaded onto my new iMac which I received July 18th.

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