You may actually be *too close* to the router. The antenna on either the Squeezebox or the router may have a close-in dead spot, *or* you may be overdriving the receiver on the Squeezebox's wireless card (causing distortion in the signal).
You may want to move the Squeezebox and router further apart to see if it makes a difference.
The two transmitters are probably within each others' near field (http://en.wikipedia.org/wiki/Near_field). Typically, wireless devices are made to be operated in their far field. When they come really close, they behave quite differently.
As a rule of thumb, transmitting radio antennas should be separated from each other by at least a couple of wavelengths. The wavelength for 802.11b is about 12cm.
Transporter - Genelec 8020A
Squeezebox 3 - Yamaha NX-A01
Serener GS-L02 - Via EPIA SP8000 - Ubuntu 6.06 Server
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