Close the lid very weak internet speed Open the lid great internet speed

I have my 13.3" MBP connected to a external display (23" ACD) using BT mouse/KB. With the lid cracked open I have GREAT internet speed, if I close the lid internet speed slows to a CRAW.

I have never had this problem before.

Here's what I tried:

Time Capsule (TC) reset (unplug)
TC changed several channels
TC Changed network to Mixed, and N (2.4GHz), N (5GHz)
TC checked Internet Robust
Reset Cable Modem (re-provisioned)
Checked with application iStumbler no problems with interference

BTW, I have 2 laptops and both do the same thing if connected to the 23" ACD in a room about 22 feet away from the TC. I also have a 24" ACD LED in another room that's about 5 feet away from the TC and do NOT have any of the problems described above with either MBP connected.

Internet Speedtest lid closed = 0.32 mbps download
Internet Speedtest lid open = 28.89 mbps download

http://www.speedtest.net/index.php?nojs=1

This is not just a flby. I've been testing and setting now for 2 hours with NO change.

Any ideas?

Thanks