Very slow/stalling wifi connection on iMac

I recently purchased the iMac 21.5" Core i3 3.06GHz- I was quite exited about my new computer as I've been thinking about switching to Mac for a couple of months. I was amazed with the software compared to Windows, but so far I'm very dissapointed with the wifi connection.
I connect to a router which is two floors down in the same apartment building (we have an agreement to share the connection with my neighbors)- D-link router using WEP- authentication. On the same spot where I placed my iMac, I regularly get 2-3 out of 5 bars and speeds of approx. 250 kb/s with my corporate Windows7 lenovo PC. However, the iMac wifi connection is very slow- I'm not sure of the exact speed, as the connection is very unstable- sometimes webpages load quickly, but sometimes a simple web-page takes forever. The key issue is downloading files- when downloading a file, the speed starts at 250- 300 kb/s at first, then quickly drops to approx. 50 kb/s, a then usually stalls and the download is rarely finished.
I have tried browsing apple support for help, and found advice to adjust MTU in AirPort settings, and I experimented with various DNS, but niether of these seems to help, my web-browsing and page loading times seem to have improved, but downloading files is still almost impossible. The problem si very frustrating, since I get reliable speed and connection on my lenovo PC on the very same spot as the iMac.
Based on reading internet discussions on this topic this seems to be a rather wide-spread problem with the iMac, and I'm wondering if anyone here has a similar experience and any suggestions for a solution? Can it be an issue with the aluminium body which has poorer reception, and I simply need to move my desk to different location in the apartment?
Thanks, I appreciate all suggestions!

Hello,
Is that Interface dragged to the top of Network>Show:>Network Port Configurations and checked ON?
The Interface that connects to the Internet, needs to be drug to the top of System Preferences>Network>Show:>Network Port Configurations and checked ON.
10.5.x/10.6.x instructions...
System Preferences>Network, click on the little gear at the bottom next to the + & - icons, (unlock lock first if locked), choose Set Service Order.
The interface that connects to the Internet should be dragged to the top of the list.
The interface that connects to the Internet should be dragged to the top of the list.
Then highlight the Ethernet, click Advanced, is it set to Using DHCP, what IP does it Show & Router IP, then click on Proxies tab & make sure none are set, click on the DNS tab and enter these numbers...
208.67.222.222
208.67.220.220

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