Originally Posted by johnling
Switch your router to channel 11. When this was happening to me a while back I found that somewhere. I cannot remember the logic or explination behind it. It worked for me, that's all I know. A search might find the explination.
You will want to use channel 1, 6 or 11. 1 and 11 do not overlap 6 so it is best to pick one of the "outside" channels. All US equipment on the 2.4GHz spectrum use 11 predefines channels. Most items are set to channel 6 in the middle of the "band", then next default is 1. 11 is not normally used as a default and therefore you will experience less interference on 11.
If your neighbor is using wifi also, you may want to set to a channel on the opposite end of the channel list then that of your neighbor.
Also, using security on a router is smart, but with the security, comes more overhead. If you are getting interferance then the security header of each packet could be getting messed up and in turn will not be accepted by your router. One way around this is run an open router but limit access to the router to only specific MAC addresses. This will make your network appear open, but it is actually harder to break into because the router will not allow any machine onto the wireless network unless you have manually entered the MAC address into the router. This will also improve network performance as you do not have the begining and ending secuiruty information on each packet.
As for the original poster... switching channels is a smart idea, but that may not be your only issue. You may want to ensure that you are using the most up to date OS on your phone.