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Superchunk and pezus are correct, you need a new router. I had the same issue a few months back, and that fixed it instantly.

There are plenty of cheap but good ones out there, and installing them is really, really easy. Even this cheap piece of junk (http://www.amazon.com/Netgear-WGR614-Wireless-G-Router/dp/B00008SCFL) has been working well for the past four months.

When you buy the router, just follow the simple included instructions for installing it, and you'll be good to go. The instructions should also include directions on how to secure your connection, so random folks can't go about stealing it.