WiFi Network Locking iMac Up

I have an issue that I believe I have narrowed down to my WiFi network. Starting about two weeks ago, my late 2012 iMac started freezing up. It was happening with all apps. Eventually the apps would un-freeze, but it was not uncommon for the Mac to become unresponsive for ten or more minutes. I have a late 2013 retina MacBook Pro that is configured almost identically to my iMac and there are no issues with that machine. I took the iMac to the genius bar today to have them run some hardware tests and everything checked out just fine. So, I came home and attempted to do a fresh OS install. When I went to set up the system from scratch, it would get as far as setting up the user account and then it would lock up. I tried several times to no avail. I finally tried accessing the internet via the hot spot on my iPhone to see if maybe it was an issue with my WiFi network. There were absoutely no problems and my iMac completed the setup.
I have an Actiontec Q1000 router with a new Time Capsule. Is there anything in my Time Capsule or router settings that would be causing these problems with my iMac? It's strange that it worked just fine when I accessed the internet through my iPhone hot spot. I've never had a WiFi network cause problems with any of my machines and it's strange that it's not causing problems with my retina MBP or any of the other Macs in the house.
Any feedback would be appreciated.
Thanks, Greg

Yes, I have a Fusion drive, but this problem is new as of two weeks ago. I've had the iMac for a little over a year with no problems. This is more than just a slowdown though. It's definitely something wrong with the iMac. I suppose it could be related to 10.9.1, but I haven't read anything about other people having this issue. And, it's strange that it works just fine when connected through my iPhone hot spot.

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