I wish I could say I am reporting back with some good news, but I'm not.
I tried WiFi channels 1,6, and 11. It might work for a while, but then I get the "YOUR WIFI IS UNSTABLE" error on my Droid. I tested all three channels and all three channels do it.
And now the problem has spread to my desktop, which is hard wired in:
It happened with my new laptop (that I ended up returning) and I just got it on my desktop for the first time. I had to reboot or it'd keep throwing the same error. Same with the laptop I just returned, only rebooting would fix it.