Linksys WRT 150 N Wireless Setting

I usually lose signal through my router whenever I connect to the internet. We have three computers in the house and one ps3 and nintendo wii. All of whom connect to this router. I also have a wireless printer located at the living room. What I usually do if lose connection on the router I usually power cycle (restart) the modem and then the router.

I really don't know how to pick the right channel for my router. When I got this router, the channel setting were set to AUTO. I've posted some pics below. Please tell me if this is a good setting.

I plan to change my router and buy a d-link dir 655 router. Below are the settings that I have for my router. I called up Linksys Tech Support a year ago. The tech guy told me to set the channel settings to AUTO that did more harm than good.

Thanks a lot man