YouTube - ET 2009-01-06 19-03-36-53aq

It lags like this on my whole network.

I have a linksys WRT45G router

SSID broadcast is off

WPA Personal security

Plugging into router directly fixes it, but its in a cramped space thus moving computer there is not an option.

Getting wired internet is not an option.

The spike still happens when i am 2 feet from the router with wireless.

Suggestions?

You maybe having something interfering.
Things I've seen cause interference near the computer.
Cordless keyboard and mouse.
Corded USB headset.

Other devices that operate on the same frequency as your router. (2.4Ghz)
Cordless phone
Microwave oven
2 way radio (walkie talkie)
Dish network receiver/remote

Settings you can try in your router.
Change the channel
If you have all G devices, set router to G only, not mixed or B+G
Check the QOS, make sure something else isn't given priority for bandwidth

Also if it has to pass through a wall or floor, try moving the router, the straightest (not angled through walls, floor) path and avoid heat and cold air return ducting.

Corded mouse and keyboard, headset goes to the audio I/O

It happens even at 2AM when everyone else is asleep.

G only set
Tried channel: 2, 3, 6, 7, 8, 9, 10, 11, 12
Unsure how to work QoS

I tried it from 2 feet away, no luck.

Your other options would be your system and settings.
Make sure you have the latest driver for you wireless card (from the manufactures website).
Use the windows wireless manager, not a third party one.
Turn off your firewall and virus scanner and spyware monitor while testing.

Try a different wireless adapter.

Tried different adapter, didn't work. Remember, Everyone on the network that plays any online game notices this lag spike.

Make sure your firmware on the router is up to date.

Did you try it with security off?
After updating the firmware go through each setting.

I searched and could not find any firmware download (except third-party) for my router.

It's a WRT54G v5

This router is a nuetered router....Broadcom BCM5352EKPB Chipset - Switched to VxWorks OS and reduced Flash Memory and RAM; meaning that the memory and flash ram was cut in half and this was known to have caused some sluggishness in the model 5 and 6 versions.

The VxWorks Operating system was first used in this model of routers and some later models because of the embedded cpu and proprietary issues involved...There were no firmware upgrades till the VxWorkskiller was developed and allowed some third party venders to hack the system and open up the RAM and Flash memory. This cleared the slugginess that was reported built in the routers. The problem lies in performing the firmware upgrades because it can kill the router very easily if performed wrong or done on the wrong version/model.

You can try the third party firmware upgrade at your own risk but I would suggest saving some money and purchasing a newer router since that one was first brought out about 7 years ago. and the firmware upgrades are from 3 and 4 years ago....

There is a firmware update 3/03/2008 for that router.
/Support/Technical Support/Routers/WRT54G
Linksys, A division of Cisco Systems, Inc.

Product: WRT54G
Classification: Firmware Release History
Firmware Date: Jan 09, 2008
Release Date: Mar 03, 2008

Last Firmware Version: 1.02.5

Make sure yours is up to date. If you still have a problem, then it may be time to replace it.
More info
Linksys WRT54G series - Wikipedia, the free encyclopedia

hahahahahaha...I looked all over for that and couldn't find it . Glad you did!