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One thing you both might also want to try would be to set the access point into a G only mode, assuming no B clients. Mark, since you have a working B router, you could set that to B only (if it has such a choice) to allow any other B equipment to keep using it. Since if a B device talks to a G access point, things slow down for everyone.

If you do want to keep using 802.11b devices on a 802.11g AP in mixed mode then make sure you've got CTS protection enabled on all the 802.11g devices.