My wifi is finally working!!! (A lot of workarounds)
Went through a lot of threads here and got hold of a thread that describes about the macbook air issue. A lot of people had success in trying the steps listed there. Here's what I did, and mines is a netgear N WNR2000 2.4GHZ router.
Router:
1. Changed router channel to 11
2. Disabled access control list in my router setting and have just WPA2 (PSK)
MBP:
3. In the MB Pro side disabled wifi, cleaned out all the preferred wifi networks and removed all passwords in keychain. (Utilities/Keychain/login) and cleaned out the system directory under keychain.
4. Restarted the system, enabled wifi and added the new network as before
Everything is working fine now. Still there are hangs for 1 or 2 seconds once a while but I guess thats fine. One catch here is skype is giving choppy video and voice not clear. Looks like the issue is still there around but at the end of the day I don't need to be wired all the time and still can watch youtube videos. Looking at few drops in ping too. One thing is sure, apple has done something miserable with their wireless firmware/software in 10.8.5 especially to work with 3rd party routers. When time permits I would still reinstall 10.8 and apply the 10.8.4 combo patch but for now I'm good.
Thanks for all the support this forum provides.
advitha