Since wireless interference is always the main reason for drops and slow downs, I would start with a survey to see what the airwaves look like at your location. Your original post did not indicate what operating system you were using. If you are still using Leopard 10.5.x or earlier and not Snow Leopard 10.6.x, download iStumbler, www.istumbler.net
If you are using Snow Leopard, try Kismac,
http://kismac.en.softonic.com/mac
The utility will display visible networks. I say visible because most modern routers give their users the option of hiding the network and iStumbler may not pick these up. Kismac is better in that respect.
So, one of the first things to understand is that it is possible that another network is interfering with your wireless, but it can not be identified. So, you often have to experiment to try to find a solution.
iStumbler will display the signal strength of your network. It will probably be less than you think it should be as the "bars" at the top of your screen are not very good indicators of the actual signal strength and they tell you nothing about the quality of the signal. If you have a laptop and walk around with it, the strength will change depending on your location and any major obstructions that the wireless network encounters like walls and ceilings.
Perhaps even more important than the actual signal strength on your network is the noise on the network. The noise levels should ideally be 10% or less. 15% and higher indicates interference from another source.
Now look to see what other networks you can identify. Check to see what channels they are operating on and what channel your wireless is using. Ideally, you want your channel to be at least 5 units away from any other channels in use. Using AirPort Utility - Manual Setup - Wireless tab, you can change your channel if needed. Bear in mind that some other network may "appear" tomorrow that is in conflict with yours, but there will be things that you cannot control.
We have not talked about cordless phones, but they are a major source of problems with wireless networks. If you have them, turn them off for a few hours to see if you note any differences in performance.
Wireless security systems cause the same types of issues. Not much you can do about that.
Finally, you may be trying to use the 5 GHz setting on your wireless. The higher frequencies on this band are absorbed by walls and any obstructions much more quickly than on the 2.4 GHz band. Check your wireless settings to confirm what frequency your wireless is operating on.
Take your time and post back with your findings. If you live in a crowded area, you may have a tough time trying to find unused channels. If the cordless phones at the neighbors are causing a problem (there may be no way to know), you won't be able to do anything about that either.
Bottom line...my opinion here...we're already overcrowded with wireless networks in urban areas and the problem will get much worse. I don't have many answers except etherent cables and ethernet powerline adapters.