I use the Dlink dir-635 model (very similar to yours) and it works fine.
2 story house.....40 plus feet router from player.

WPA-personal is what you should be using. Make sure the firmware for
the router is updated.

Now.....I am using a Squeezebox 3 and not the radio sooooo.....

Have you played around with the channel settings? Perhaps some
interference? (though you do say you have other wireless equipment that
works fine)


-- 
brucegrr
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