I have an iMac 20-inch early 2008 with a 2.4 GHz Intel Core 2 Duo. Ever since I have owned this computer I have had problems with the wifi dropping out and the only way I can get it to reconnect is to restart the computer. Sometimes it will go for an hour or two and then disconnect from the router, other times it will do it within 2 minutes of switching it on. I can turn the wifi off but then if I try to turn it back on it doesn't respond.
Of course it would have been better if I had made a warranty claim in the first year but I didn't - I suppose because I assumed that it was a problem with my router or I hoped that a new release of OSX or driver upgrade would fix the problem. Apart from this I love my iMac and have an Apple TV, iPhone4 etc so am a convert to Apple stuff.
Since installing OSX Lion 10.7 last week it seems to have gotten worse. I have been trawling the forums and iMac driver updates from time to time over the last few years to see if Apple had offerred a solution - but they have not. My conclusion is that there is either a hardware issue with the internal wifi chip or some other physical design flaw with the imac which interferes with the radio signal, a wifi chip firmware issue or a driver issue and that the cost to Apple of admitting the problem and having to fix it for free on thousands of iMacs means that they have adopted the policy of not fixing it and leaving thousands of users hanging out to dry.
I have changed ISP at least 4 times in the past four years (I live in London so there is plenty of choice) and got a new (different brand) of wireless router each time - so I don't think it is a router issue. I have an iPhone4 and iPad1 which never drops the wifi signal and an IBM laptop which never drops out. It is only the iMac.
I have been through most of the fixes suggested - changing the channel to 11 or a lower number, removing and adding a new WiFi interface, turning off the IPv6 (or whatever its called), changing from WPA to WEP etc etc - all with no success. Since it has gotten worse this week I am now going to buy a mac-compatible wifi dongle and see if this helps.
I guess I will eventually just buy a new iMac and hope the Wifi works properly on the new one, but I live in hope that Apple will do the right thing and recall the product including the ones out of warranty (paying such a high price for a product means that under consumer protection law it should work for longer that the statutory warranty period of one year - but who is bother with the expense of going to go to court over that: maybe we should start a class action!).
(I just tried to post this reply and what do you know - my internet has dropped out so the webpage is not responding. I will have to restart my computer and log back in to this forum and post the reply. I saved the text in textedit as I have learned to take precautions after dealing with this issue for over 3 years!)