I was streaming everything wirelessly. Worked like a charm!
Which router do you have? I went through a bunch of d-links and lynksys ones (some in the $150-$200 range) before settling on the Airport Extreme. Haven't looked back, and haven't had any issues since.
I can download off Usenet at 1.5mbs, while streaming a ~2GB movie to my xbox and doing my homework on line... all wirelessly without any hitches or annoyances. If you're having issues, and you're putting your local wireless adapter through less stress than I am, then you should keep digging. Either swap your router for an Airport or, if you already have one, start fiddling with your settings or something. My stuff is all pretty much default, though. Actually, one thing I didn't mention is I'm connecting over the 5Ghz network, not the 2.4. It won't do anything for speed, but it helps cut down on interference from other devices.
(I don't have a ps3 anymore, so I'm talking about my xbox... but I did the same thing with my old ps3 and PS3 Media Server.)
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