Was curious, are there any other WiFi routers in the area? Any house cordless phones? These and other things can cause interference and disconnections. Have you shut everything down and tried just connecting one laptop to the router then to the AP and see what happens?
There are other WiFi routers in the area. Actually I can pick up several. No wireless phones in the house.
It seems that the connection drops when another device connects to the network. When using the WD Live I've discovered that if the playstation connects I will lose the connection for a few seconds. Once I connect again the connection will drop off and on. As an example, I'm playing a movie on the WD Live from a shared folder on the PC connected by wire. The WD is connected wireless, 2.4Ghz, N. The playstation, also wireless, just gets turned on and makes a connection. Wireless goes away.... On occasion the router is rebooting itself. I've watched it go through several reboots before settling down and allowing connections to be made.
Really it seems the router can't handle the load. The router will drop with just the two laptops, surfing the internet, though not as often as when the WD Live is connected. If the house is nice and quiet, one person home and only one laptop running, no drops.
I've looked at this as overheating, how many devices this router can take on at a time, WiFi channel, etc. Nothing has made a difference, except for one device at a time. Maybe it needs to be looked at in terms of utilization. Anyone know of a tool that will show me the bandwidth utilization?