Okay, I'm not saying this will work for everyone, but I too was one of the many who was frustrated with this same issue of always having Netflix constantly buffering my movies. It was rare for me to make it through any movie on Netflix without buffering and once the buffering started it was nearly futile to get it to stop. Sometimes unplugging my DSL router along with the wireless Airport Base Station helped, but not always. I did a lot of Internet reading and thinking about this then I tried the following and have not had a problem since.
First a little background. I have DSL service from my phone company. I'm not sure what the speed it, but it's most likely the slowest since it's the cheapest, but still should be plenty to stream movies from Netflix since Netflix's stream is able to dynamically step down to the user's optimal stream speed by continously reducing quality. Once it cannot sustain even a poor quality stream, that is when buffering will begin. I have both an old Apple Airport Extreme 802.11 B/G router (circa 2003) and a newer Airport Extreme (circa 2007-2008) that does 802.11 A/B/G and N. I also have three computers using 802.11. Two have 802.11N capabilities and one has 802.11B only capabilities. Then of course my Apple TV which is 802.11N compliant and a 802.11N wireless stick hanging out the back of my Dish Network receiver. Know what ALL your device's 802.11 capabilites are, is critical! This because if you have one main router as I did for everything, then your Internet speed will be dictated by the slowest 802.11 device on the network. That is, if you have multiple 802.11N (fastest) devices, but one device is only 802.11B (slowest) your wireless router (Airport Extreme/N) will limit all devices regardless of it's upward capabilities to the slowest connection speed (e.g. 802.11B). So, the slowest device on the network is the highest connection speed for all devices to the Internet if you're doing everything via WiFi (802.11).
After this reading (theory/truth) on the Internet, I used Apple's Network Utility on one of my Macs to see the uplink speed to my WiFi router (Airport Extreme/N). The reading can be attained by starting this program and selecting under the "Info" tab in the drop down menu directly below "WiFi (en1). Even though I was using an Apple Airport Extreme/N router, I was only linking at 56 Mbit/s (slow!). I check my other Mac with an 802.11N card and got the same results there too. Finally, I check my uplink from my old Mac with an 802.11B card and got the same number there as well. Since none of my other devices can show me the uplink speed to my WiFi router I figured this was the lowest end setting and that as long as I was using the Mac with only 802.11B speed capabilities on my network, this would be my limitation.
So, here's what I did. I set up two networks. One network runs through my Airport Extreme 802.11B/G router and another network runs through my 802.11N router with only N capabilites allowed. So, the Airport Extreme 802.11B/G router handles all the slow traffic and the other Airport Extreme 802.11N router only handles 802.11N connections. My 802.11N router hooks directly to my DSL modem and out the back of this router I hard wired the connection to the 802.11B/G router. Each WiFi router has a separate name and is configured to hand out differing sets of dynamic addresses (as a safe guard) which can be set up in using Apple's Airport Utility. In the Airport Utility I set up the 802.11N router to only use 802.11N and the 802.11B/G router to use only those settings as well. In essence, I've elimated access to the 802.11N router by devices running anything less than 802.11N. Since my two Macs and the Apple TV are 802.11N capable, I select the 802.11N router to receive wireless Internet. All other devices and my one older Mac use the slower 802.11B/G router.
Since I have established this set up, I've not had one streaming issue. My two Macs now measure 300 Mbit/s and 270 Mbit/s. The older Mac with an 802.11B only card reads 56 Mbit/s to the 802.11B/G router. I have not had trouble running two separate networks within my home. For those of you with newer Airport Extreme Base Stations with the abilty to set up two networks from one router should find this even easier to set up.
I'm not a network engineer, but I do understand this stuff pretty well. It amazes me, that there is no place in the Apple literature or somewhere telling folks about the limitations of these routers and how the dynamically set up connection speeds based on the lowest common devices capabilities. This literally took me about 6 months to figure out through scouring the web. The biggest piece to figuring out this puzzle was getting a reading on my wireless router and my computers' uplink speeds to that device. Since I had the necessary hardware, it only took a little bit of time to segragate my wireless Internet connections into fast-and-slow. Now, my Apple TV (Netflix) runs and two newer Macs run on the fast wireless network, everything else gets dump onto the slow wireless network.
Hopefully, this will help many of you. Sorry for the lengthy post, I tried to write it in a way that made sense and that all of you could follow. Good Luck!