Xbox Live issues - can anyone help

Hello - I am hoping someone can help me out with some Xbox Live connection issues that are driving me crazy.  (Please bear in mind that I am a novice with these issues).
I am attempting to connect to XBox Live via the Xbox wireless adapter and the WRT54GS router.  I have the router hardwired via ethernet port to a desktop computer.  Here are the problems:
1.  The connection is very weak and spotty, with frequent disconnects.  I would say that I get a successful connection to Xbox live about half the time.  The failure message seems to be different every time.  At best, I get only one red bar on the Xbox Network Settings.  Usually, I have to unplug and re-plug in the router to get online.
2.  I tried to help the connection by buying a wireless range expander.  However, when the range expander is plugged in, either I am unable to connect or it connects but I am unable to download any updates or content or marketplace runs very slowly.  I assume there is some configuration problem with the expander, but I have no idea how to fix it.
3.  Even when I am connected, if my wife turns on her laptop I get disconnected. 
4.  When I call Xbox support, they tell me it is a problem with the router.  When I call Linksys they tell me it is a problem with Xbox Live. 
Can anyone help?  I have read a couple of posts about setting static IP addresses and opening ports, but I don't know how to do this.  And would it even help? 
Thank you!!!
Message Edited by MarcM on 07-11-2007 02:55 PM

hi... logon to router's setup page, open I.E. and in the address bar type 192.168.1.1 it would ask for username and password, put "admin" (default password) as a password, try changing channel to 11, go to advanced wireless settings reduce beacon interval to 50, fragmentation and RTS threshold to 2304, change Transmission rate to 54Mbps, also try upgrading latest firmware on the router, go to www.linksys.com/download and download the latest firmware for the router, logon router's setup page again and click on "administration" >> firmware upgrade and try upgrading latest firmware...
click on "application & gamings" tab...and try triggering 88, 3074 ports on the router for X-Box...reduce MTU to 1365 on the router.

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