WAP4410N problems, slightly different than the previous ones

Question

Hello,
I've just purchased a WAP4410N-E V02 for home use and I'm experiencing some strange problems.  Whenever the device is close to other electrical devices, it slows down until it eventually grinds to a halt, sometimes requiring a power cycle.  I can ping the AP, or my gateway (over the wireless connection), and the ping times go from 1-20ms to 15,000ms+.  After a certain amount of time, the wireless connection completely dies and the AP isn't even reachable over the wired network (no ping, no http).
By close, I mean like 1m away in some cases, or less in other cases.  Since this is for home use, it's a bit of a problem, as my placement options are quite limited.  Here are the 2 scenarios:
1) close to my vdsl modem/router
the wireless-G connection on the router is turned off. 
Distance is 1m. 
The AP is plugged into the router. 
This setup is completely unusable, as it instantly becomes slow.  If I pull it away about 2m and place the AP on the floor, it works fine.
2) plugged into my switch close to the tv/pvr (tv over ip)
Distance is up to 2m.
When the tv is on by itself, no problem
When the pvr is on, the AP starts becoming unstable.
If I turn the pvr off, it recovers (unless I left it on long enough, then it gets stuck for good and never recovers).
So I can really reproduce these problems now.  At first I thought it was completely random and I was trying all sorts of different ideas like changing channels, changing ssid settings, etc..
Am I really putting this device in situations where it wasn't designed to work?  Just because it's a small business device, I don't see why it shouldn't work 1m away from a home VDSL modem, or 2m away from a tv tuner/pvr.  I can't really mount it high up on the wall, away from all interference because it wouldn't look so nice.  I guess home use has different priorities.
Also, seeing how other people have certain unexplainable problems with these devices, could it be related?  I don't know how their setups are, but I can say that the behaviour is similar to other posts that I've read.
What is the proper way to proceed with this problem?  Do I just return it to the store?  Do I need an RMA?  Or does Cisco have some recommendations that I can try so I don't have to return it?  I'm quite disappointed that I've lost a whole day trying to diagnose these issues.  I was hoping that if I spend a bit more money on a business-grade product, I would save time with trying to figure out the quirks of most home products, but it seems to be the opposite in this case.
As a note, I have done the following, as per previous posts regarding this AP:
- using A/C adapter, not POE
- Hardware reset
- Install firmware 2.0.4.2
- set wired port to 100mbps
- single SSID, WPA2-Personal, 11 character a-z key
- B/G/N Mixed,
- Channel 11 (tried Auto as well)
- Key renewal 36000
- disabled connection control
- 802.11d disabled, Germany, 20MHz bandwidth

Answer 1

See all the settings available in XLD and that will give you an idea as to how ripping could potentially vary between rippers. I don't know the details of how iTunes works but error detection has a lot of different settings with XLD.  iTunes does some too, but I don't think the details are publicly available for comparison.
It may not only vary with the rip settings but also with the encode settings if you are using mp3 or AAC.