I've generally found every wireless solution I've tried to be a bit flaky. I even tried re-buying everything from the same manufacturer and still wasn't happy with the results. Although it sort of works, it's not exactly stable and things occasionally need rebooting etc.
Potential free solution: have you tried switching off all encryption, and configuring your router to only allow access to certain MAC addresses? I found this improved things a lot with my PSP, although my PS3 worked alright with encryption.
Although it's not a free solution, have you considered powerline networking? I switched to this solution about 8 months ago, and so far it's fantastic. Works just like an ethernet network. I only use the wireless for the laptop these days (never use the PSP - won as a prize, I'm not big on mobile gaming).
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