Stick to the 1.11 and try setting the channel to 1 or 11 - whichever is less crowded. 6 has the highest theoretical bandwidth but is the default channel and most routers in your area will use this. Also, make sure your wireless security settings are set to WPA2 only and AES cupher only and not WPA TKIP or WEP or your bandwidth will be reduced by 70%. I also find that forcing the Transmit rate on the router to a fixed rate like 130Mbps for non MIMO clients to work much better especially after the client has been connected for a few hours - the auto rate seems to not work well as range extremities. Since 802.11n bandwidth will be limited to 80Mbps of real world throughput or lower from modulation and error correcting, adjusting to a fixed link rate is not a big issue.
The WDTV uses a Sigma Designs SMP863x chipset for hardware decoding and will not choke or stutter on any high profile 1080p video up to 50Mbits. The problem is definitely wireless performance. If you can take a laptop to the TV (and install the Dlink adapter as well on the laptop) and run netstumbler (or iStumbler for Mac), you ideally want a SNR of 25 or greater. If it is above 35 all the time then there is little interference and the connection is good, but if it is jumping around a lot then throughput will not be constant.
Do a bandwidth test. Run Jperf in server mode on a computer that is connected to the same wired node as WHS and run Jperf in client mode on the laptop near the TV using the Dlink adapter and run a Jperf test for 60 seconds. Most 720p H.264 Mkvs on the net use 3-6Mbit bitrates so ideally you want the Jperf test to be as high as possible but it will likely never be over 70Mbps and usually much lower like 40Mbps in 11n mode. If you are not constantly getting the minimum Video bandiwdth through the 60 second Jperf test then you are at the range limit of the 655 for that environment and that 11n adapter. A new adapter may not do anything because the adapter sensitivity is likely very similar in off the shelf products. A new Router is a better option like a Netgear WNDR3700, but don't buy it just yet.
http://code.google.com/p/xjperf/
5Ghz is subject to less interference and can run in 40Mhz channels for higher bandwidth, but often 5Ghz suffers from shorter range than an uninhibited 2.4Ghz 11n network, espcially in 40Mhz mode. If your SNR tests were 25 or lower and you were less than 30 feet from the 655 and you live in an area with many 802.11 networks (like an apartment or condo), then 5Ghz equipment would benefit your situtation but you need a new 5Ghz AP and adapter (keep your 655 for 2.4Ghz traffic).
If you have weak SNR and low throughput at that location, consider a DD-WRT 802.11n wireless repeater that you can put midway between the 655 and TV. A cheap refurbished Netgear WNR834B for $30 works great for the 2.4Ghz band because you do not need any new client gear, just install DD-WRT on it and setup the Repeater Bridge.
http://www.newegg.com/Product/Product.aspx?Item=N82E16833122266&cm_re=wnr834b-_-33-122-266-_-Product
http://www.dd-wrt.com/wiki/index.php/Repeater_Bridge
Or buy a nice store bought repeater that can even mount on your ceiling if you want.
http://www.keenansystems.com/store/catalog/product_info.php?cPath=2&products_id=308
If you have cash, you can also get a WNDR3700 and disable the wireless on the 655. If you really have cash, buy a Wireless Access point that has beamforming like on antenna beamforming from Ruckus.
http://www.smallnetbuilder.com/content/view/30925/96/
http://www.smallnetbuilder.com/component/option,com_wireless/Itemid,200