Router lag issue

I been using this same router by linksys (wired) for quite sometime taken with me to new aprts. Recently with this new move in iv been experiencing some strange lag issues when the other computer a good 30-40 ft away wired to this router begins to download files where me is the router and main cable modem i get very high ping. Thus i cannot do anything but experience worse then 56k dial up internet speeds.

Yet im the one affected when this happens and i get very low download speeds with this 8.0mb connection i only get an average 250-400kbps downloads and the other computer gets over 1mb the majority of the time.

This is the first time something like this has ever happened to me iv had this router plug up fully with 4 computers and never had this issue im not even sure if its the router itself maybe its this new cable internet from this new area/aprt. i could only assume maybe there needs to be some space between the router and modem? iv never had to do this before there always side by side. Iv tried installing the cd with the router a few times yet nothing changes.
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More about router issue
  1. test it with the router bypassed and just the one pc plugged in directly to the modem. if it still happens its the modem or something else on the isp's end
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