What causes a lost wireless printer connection?

This is Sean again. Here is more info.
The modem/router combo that we have is the Westel 7500. It is located in the kitchen and it is about 15-20 linear feet from the laptop and wireless printer.
A mobile landline phone is located immediately next to the Westel 7500 router/modem. Both phone and Westel 7500 share the same line by a splitter at the wall jack.
The wireless printer is a HP1102w.
8 feet from the wireless printer there is an Insigna 32” LED TV from which we listen to Pandora via our Blue Ray player which can connect wirelessly with the internet.
Insignia NS-32E320A13
Samsung Blue Ray Disc Player BD-E5700
Downstairs in the basement we have a wired HP inkjet 4200
The basement desktop computer is running with Windows Vista and has an external USB modem attached to it. The modem once in a while loses connectivity, but by simply unplugging and reconnecting it re-establishes the connection. It always has 4 of the 5 bars of connectivity.
The laptop is a business class HP running XP home.

I uninstalled/reinstalled the drivers on Saturday to both computers. On Sunday morning, the connection was lost to the wireless printer for both computers. Internet was fine.

I think I have solved the issue. I changed the channel to 1 from channel 6. I also changed the power setting. It was set to auto-sleep or something like that. I changed it to 'always on'. I have had no problems for 6 days.