Reducing Lag on Wireless Connections

Ok im using a netgear wireless router which is in my dads study, and im using a netgear usb adapter to get signal, Im always on max 54mbps and Excellent 5 bar signal strength, I am the only one using the wireless router as he is plugged in via ethernet.

I still get frequent lag which is just plain irritating XD especially on skype as that lags too, its been like this for a year and some people have been throwing ideas but none seem to work, i've tried lowering my MPU from 1500 to 1300 and still no change.

If anyone could give me tips on how to reduce lag and still stay on wireless i would be very happy

1. Does the wired connection have the same problem? Are you sure the the problem is with the wireless and not further upstream?

2. If the wired connection has the same issues, I might start with:

^ this may be your problem. If it likes your internet connection, skype may try to use it to route other people's calls -- even when you're not using it. It can potentially saturate an entire T1 line this way if it gets a chance. Skype is serious bad news and I would never install it on any PC for anyone. If you need a videophone client, I'd suggest wengophone, which has better sound and picture quality than skype without the crap.