Thanks Born Conservative!
I have the Netgear router and adapter myself 8)
Good luck. http://forum1.netgear.com/
Update the adapter drivers on both systems and update the firmware on the router. Most likely that will fix your problem with the dropouts, etc... Also, sometimes there is software that comes with the router that helps ease the kind of pain your seeing, you can probably find it on the Netgear website as well, which is also where you’ll find the drivers for at least one of your network cards and the firmware for the router.
Other than this, I would double check your firewall settings on the WAP PC and all other PCs connected to the WAP.