Hey, I have a Linksys WRT54G v8 running DD-WRT firmware in my apartment, and I've been having some issues with it. There are 4-5 computers connected to it. Any time anyone is downloading anything (even just downloading a 20MB install file from a website) the router speed instantly goes to crap. I'll be running a ping test directly to the router and the ping will jump up to 100-300ms. Anyone have a clue why this is happening?
I'm not an expert but I've been reading a lot about DD-WRT lately. I think that your problem is the limited RAM of the v8. Try reading the forums and Wiki at dd-wrt.com. There should be a page specifically for the v8.
Another phrase I've seen is QoS (is that right?). I think you can prioritize who gets how much bandwidth through DD-WRT. Remember that if you have 3Mbs download speed and 5 computers are using it, it is DIVIDED among the computers. And if your QoS is set to give priority to downloading large files then there may be little left for the other computers to share.
I hope this helps and that I'm right. It will justify the hours and hours I've spent researching. But if I'm wrong, I'll learn even more.