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[ppdk]

On the main Wi-Fi I have 8Mbps download speed with 2 bars.
Behind the DIR-505 in Wi-Fi hotspot mode, download speed drops to 1.5M with 4 bars.

Why is there such a drop in performance? 
What settings can I change on the DIR-505 to increase performance?

[FurryNutz]

I presume there could be some processing thats happening since the 505 has to take one signal pipe and then convert it over to a new signal for clients to connect to. I presume there maybe a performance hit in this mode.

You could test the 505 out in wired AP mode to see if you see the same speeds there or not. Disable all other WiFi on the main host router if you test this.

[ppdk]

I understand that the router has some computing to do, but what services of the DIR-505 can I turn off to limit the drop in speed and reduce the computing burden? The bandwidth currently drops by 80% when it crosses the DIR-505, I am taking a big hit.

Besides, I cannot understand the drop in speed. If the incoming theoretical speed is 8Mbps and the observed outgoing speed is 1.5Mbps, does it mean that the router buffers the difference (which I doubt) or purposely ignores/drops some of the incoming packets, until the computing of the previous packets is finished? Or does it just use 1.5Mbps of the available 8Mbps speed?

Note: there is no other trafic on my network, just the DIR-505 and an iPhone behind it.

[FurryNutz]

I don't think there is much if not any other features that can be disabled while in Hotspot mode. One thing you could try, disable all WiFi security on the main host router and 505 and test the speeds. I presume there is just maybe some processing performance differences that are going to be seen when going from the main host router to the 505 then back out in Hotspot mode on the 505. I don't think Hotspot mode could be capable of handling higher thru put speeds and is mainly meant for just generic Internet surfing. If your looking for better thru put speeds, you may want to use a different mode.

I recommend that you phone contact your regional D-Link support office and ask for help and information regarding this. We find that phone contact has better immediate results over using email.
Let us know how it goes if you find out anything please.

[FurryNutz]

Any status on this? 

I understand that the router has some computing to do, but what services of the DIR-505 can I turn off to limit the drop in speed and reduce the computing burden? The bandwidth currently drops by 80% when it crosses the DIR-505, I am taking a big hit.

Besides, I cannot understand the drop in speed. If the incoming theoretical speed is 8Mbps and the observed outgoing speed is 1.5Mbps, does it mean that the router buffers the difference (which I doubt) or purposely ignores/drops some of the incoming packets, until the computing of the previous packets is finished? Or does it just use 1.5Mbps of the available 8Mbps speed?

Note: there is no other trafic on my network, just the DIR-505 and an iPhone behind it.

[ppdk]

Any status on this? 

Nothing to update. I returned the DIR-505 to D-Link and got a refund, because it did not meet my expectations in terms of Chromecast compatibility, and I did not find the D-Link support very reactive / friendly.

[FurryNutz]

Good Luck in your endeavors, sorry it didn't work out.