Setting channel manually is important. I'd been using auto-channel for a while but had been having a lot of trouble holding a steady connection despite every spot in my apartment being within 25 feet or so of router. I downloaded a free app on my Android phone called Wifi Analyzer
https://play.google.com/store/apps/details?id=com.farproc.wifi.analyzer&hl=en to scope out interference from neighboring access points. (My phone, an HTC Rezound, has both 5GHz and 2.4GHz wifi radios) Watching the signals for a course of several hours, there are at least 20 access points within range of my apartment. Then, I noticed that most of my neighbor's access points were using "auto" on their respective router's channels. The funny thing was that the routers were sort of "running around in packs": Everyone would switch to the channel that had the least interference for a period of time!

So I put mine on a fixed, empty channel and, viola, everyone stopped stepping on me quite so much. My channel, since I was always on it, was never empty, so the "pack of routers" would change to the more empty space (where they were all stumbling on each other once they got there).

It improved my signal by a lot, but my DGL-4500 was still not enough to overpower "Busy Panda", the router whose signal trounced all others--even mine

, outside of a 5 foot radius.
I moved to an E4200v2 and my PC's signals improved radically--but Xbox Live support on that was AWFUL. Now, after 5 months, I gave up on it, especially since the v2, just introduced in JANUARY is already DISCONTINUED in May. Goodbye firmware support. Ugh. Ordered a DIR-857 last night. We'll see how it goes.
At any rate, the moral of the story is: pick a fixed channel and stick to it. Use either 1, 6, or 11 on the 2.4GHz band. On 5GHz in my apartment, there is NO interference at all (seems like no one in the complex has 5GHz...). I wish all my devices had a 5GHz radio...if you have the option, that's even better.