Something wrong with my router!

I bought a very expensive DLink DIR-655 a while ago. I use it to stream to my Xbox 360, but it doesn't seem to be working very well. There's a Gigabit link from my PC to the router, and as I understand the 360 is 100Mbit/s. I'm getting pretty horrible lag when watching videos that are AVI, DivX, 1100kbps, and 704x368. I get the same amount of lag when watching a 720p AVI file, MP4 inside, 3103Kbps with AC3 audio. The network monitor gadget I have says it's uploading at 40Mbit/s, and works nice but every few seconds or so it drops to like 5-10Mbit/s, which then makes it stutter like crazy. The strangest thing is I can watch a full 1080p movie in a AVI DivX, 5000Kbps, and AC3 audio absoultely perfectly. I think this is a router issue I've been having quite a few problems, played around with about every setting, nothing has helped (but disabling network fragmentation helped a lot, but not enough). Be very glad if someone could help.

PS: My PC can definitely handle this, and nothing else is happening with internet, network usage, or computer usage at the time.
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  1. I had almost exact same issue only mine was a DIR-655 to my PS3

    on 720 I found it to be a interlacing buffer issue the output from my media server software was giving me the lag. 1080 had no issues. New software in the end - TVersity - resolved it.
  2. yeah i just switched to Media Center, seems to be working fine. It has a network performance detector and it says its above for HD, but it doesnt really work that well over 720. at least i can use plain old sd files
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