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I have my computers upstairs hard wired on a dlink router/wireless G. When my wife is uploading big files to the server the net connection slows to a crawl. If I got a better router would it prevent that from happening?

If you find one that does QoS Packet Scheduling you can prioritize HTTP traffic over FTP so that you don't have the latency problems. I don't know a lot about it, but know that it's possible.