OK, my wife just went through this ordeal (2007 MBP, Atheros 5424 chipset).
Thanks to the work of others diagnosing this, I found a solution that doesn't require a full downgrade, although a little bravery might be needed.
As has already been stated, the version of the firmware for the Atheros cards changed in 10.6.5. This seems to be the culprit. Did anybody bother testing this fully? The new firmware is unable to maintain a connection under conditions that the older firmware handles with aplomb. Anyway, we clearly need the older driver/firmware, but downgrading to 10.6.4 seems rather draconian, so I set about finding a solution that just fixed that problem.
To cut to the chase, you can run the 10.6.4 drivers on 10.6.6. To do so,
1) Download the 10.6.4 Combo update and the Pacifist program that allows one to extract files from, amongst others, ".pkg" files.
2) Mount the update .dmg, open the package in pacifist, extract the subtree "/System/Library/Extensions/IO80211Family.kext" to a convenient location.
3) As root, cd to /System/Library/Extensions, rename IO80211Family.kext to IO8021Family.10
66 (or anything else to back it up), and copy in the replacement IO80211Family.kext that we extracted from 10.6.4.
4) Download, install and run "Kext Utility" (Google it, it's at Insanely Mac). It should ask for your password, run, and fix up the kext permissions and caches.
5) Reboot. You should now be on the new (old) driver/firmware. Verify by running "About this Mac" -> "More Info" -> "Network" -> "Airport". As stated, the newer firmware is 2.1.14.5, the working firmware is 2.0.19.10.
After doing this, my wife's MBP is back to full functionality and domestic harmony is restored. Apple, please revert this driver and inform Atheros that it does not work correctly.
Message was edited by: tenortim (fix typos)