Check and see what the connection quality is between the router/wireless card as well as what rate it's connecting at. Personally, I'd never game over wireless - you can hook directly into the router at 100Mbit/sec and don't have to worry about any kind of strange wireless packetdrops.
My advice would be to plug into the router directly, see if it gets better. If it does, you'll just have to hook in whenever you're playing games. If not, I'd say it's more likely something with your ISP instead of the router.
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