WRT54G V3.0 Wireless Speed Issue - ping example

Hello:
I have been having very odd wireless connectivity issues with my router. The issue happens randomly, and from what I can tell, it is not based on interference.
Basically my wireless connection always stalls. Sometimes it quits all together. I get the exact same result weather I am one foot or twenty feet away from the router.
This can clearly be displayed by pinging my device:
64 bytes from 10.0.1.1: icmp_seq=0 ttl=64 time=1.830 ms
64 bytes from 10.0.1.1: icmp_seq=1 ttl=64 time=1.076 ms
64 bytes from 10.0.1.1: icmp_seq=2 ttl=64 time=1585.422 ms
64 bytes from 10.0.1.1: icmp_seq=3 ttl=64 time=586.110 ms
64 bytes from 10.0.1.1: icmp_seq=4 ttl=64 time=1.066 ms
64 bytes from 10.0.1.1: icmp_seq=5 ttl=64 time=1.140 ms
64 bytes from 10.0.1.1: icmp_seq=6 ttl=64 time=1.100 ms
64 bytes from 10.0.1.1: icmp_seq=7 ttl=64 time=1583.515 ms
64 bytes from 10.0.1.1: icmp_seq=8 ttl=64 time=584.304 ms
64 bytes from 10.0.1.1: icmp_seq=9 ttl=64 time=1.027 ms
64 bytes from 10.0.1.1: icmp_seq=10 ttl=64 time=1.917 ms
64 bytes from 10.0.1.1: icmp_seq=11 ttl=64 time=1.062 ms
64 bytes from 10.0.1.1: icmp_seq=12 ttl=64 time=1578.423 ms
64 bytes from 10.0.1.1: icmp_seq=13 ttl=64 time=579.661 ms
64 bytes from 10.0.1.1: icmp_seq=14 ttl=64 time=2.842 ms
64 bytes from 10.0.1.1: icmp_seq=15 ttl=64 time=1.098 ms
64 bytes from 10.0.1.1: icmp_seq=16 ttl=64 time=1.050 ms
(it should be noted that if i plug directly into the router via ethernet I get perfect pings / no stalls like above)
My current Firmware Version is: v4.30.5
Here is what I've tried changing/testing and had the exact same results with:
-Tried every wireless channel- and i've tried wireless G only.
-Reset back to the default firmware/flashed the device/reinstalled everything etc etc- many times
-disabled any wireless security
-turned off all bluetooth devices, wireless phones or cordless phones in the area (no microwaves are running).
If i use another wireless router (i borrowed my AP from work one night), it works perfectly, no issues. This is why I think it may be a hardware issue with my router. (There are other wireless routers in the area, but my testing router from work is just fine with the others).
Is it possible I have a hardware issue with this WRT54G?
If not, what other things can i try?
Thank you for any help you may have.
Happy New Year!
-roscolux

i cannot think of any other settings besides the advanced wireless settings
beacon interval   -- 50
fragmentation     -- 2306
RTS                    -- 2307

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