I've seen lots of discussion about this but no fix unfortunately. I'm using the AirTrafficControl widget and it really highlights just how much the speed of the connection continually jumps. It almost looks like the Airport disassociates when it looks for other connections. However I think it's more likely that this could be the problem:
http://www.intel.com/support/wireless/wlan/sb/cs-006205.htm
I got there by following a link from an FAQ about the wireless chipset now used in the Core Duos. Of course Apple don't expose the power-saving options to us mere mortals, so I suspect we'll have to wait for some kind of software update to solve this issue. 10.4.5 doesn't seem to have been the solution unfortunately.
It makes me a little concerned for the performance of the MacBook Pros where you most certainly will want the power saving features.
By the way, I'm having this problem when trying to connect to an Airport Express 6.3 and with a Mac mini with Internet sharing enabled.
iMac CD 20", Mac Mini, PowerBook G4 Mac OS X (10.4.4)