My configuration looks like this:
* a SMC Barricade 7804WBRA Wifi/ADSL router
* WEP encryption
* Dell D620 notebook with an Intel Corporation PRO/Wireless 3945ABG adapter
* jaunty (2.6.28-15)

... and I have the same problem : regular loss of wifi connection,
apparently related to intense traffic.

I've been able to solve this albeit with a compromise.

My modem was configured to operate in mixed IEEE802.11b/IEEE802.11g mode.
After having it altered to IEEE802.11b only mode it all works fine.

This really only appears to be a compromise since I'm using an ADSL
connection with a downstream bandwidth of 4Mbps, hence the IEEE802.11b
11Mbps limit doesn't bother me at all.

-- 
[Jaunty] Intel wireless 3945ABG is unstable and disconnects frequently
https://bugs.launchpad.net/bugs/348204
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