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It's a bit illogical to assume the router's responsible for going from 5mbit to 500kbit, because their transmission speed (especially if using wireless n) is far faster than 5mbit. even dropping to 5mbit would be a drastic reduction in its max capable wireless speed capability. the bottleneck there is your internet speed, not the wireless.
HOWEVER, regular patterns in wireless interference are possible. Even a significant power draining device like a microwave, tv, etc drawing from power lines between transmitter and receiver can cause the problem.
If your connection always drops/reduces during a particular time, it's probably not due to distance and number of rooms away. More likely some kind of interference like electronics, etc.
Oh and one more possibility. Torrents destroy a lot of routers. I don't mean literally, but extremely overwork them to the point where they crash. I had this happen with a linksys router a year or two ago. Upgraded to a dlink gaming router and it runs torrents, voip, and anything else I can throw at it no problem. Anything like torrents, file sharing, voip in combination with other high traffic stuff can cause this with cheaper routers.
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