WRT-160NL & iPhone 3G problems

Hi all, I am literally 3 feet away from my router and I cannot get a wifi signal or I barely get 1 bar on the wifi icon.  Sometimes it will connect for a moment and then disconnect.  What gives?  I have a MacPro over 30 feeet away and I get full wifi and a Macbook about 15 feet away and get full wifi. It's an iPhone 3G running the latest software.  Any help would be greatly appreciated.  I'm running the router in the following config wiht the latest firmware (B17):
Wireless Configureation: Manual
Network Mode: Mixed
Network name: xxxxxxx
Channel Width:  Standard - 20mhz Cannel
Wide Channel: (grayed out)
Standard Channel: 11-2.462ghz
SSID Broadcast: Enabled
Security Mode: WP2  Personal
Encryption: TKIP or AES
Key Renewal: 3600 seconds
SPI Firewall Protection: Enabled 

Login to the Router setup page and click on the Wireless tab and click on the Sub tab  "Wireless MAC Filter" if its enable then you need to Disable it and click on Save Settings.... Then click on "Advance Wireless Settings" and below Change the Beacon Interval to 50,Change the Fragmentation Threshold to 2201,Change the RTS Threshold to 2202 and Click on Save Settings...
Now see if you can locate your Wireless Network and attempt to connect...
If that still doesn't solves your problem then i think you need to upgrade the firmware of your Router. Once the firmware on your router is upgraded then you need to reset your router and re-configure all the settings on it from scratch. 

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