In case others have the same problem as I did (i.e., PC wouldn't connect at more than 54Mbps/wireless-G speeds) and want to avoid hours of frustration and deadends... To summarize what I did to get this to work
1. Have current Intel driver (on their website); Lenovo had not installed current driver on my new laptop; oh well
2. Set router to 20/40 Auto channel width, mixed n/g
3. Turn on WPA2/AES encryption
4. Enable WMM and QoS on router (QoS was already on for me, but people on Intel forum told me to check it was on so sure it must do something good)
Step 4 worked magic - went from 54Mbps to 270Mbps in a hurry. Speed fluctuates a bit it seems but still a vast improvement.
Thanks to you who tried to help.