wow, great information... you see the 8 port switch should not see any collisions as they are full duplex(you have mentione that above) but the WAP uses a 4 port HUB... this is the reason why sometimes on a busy day broadcasts from multiple PCs can Freeze the network... to improve the situation is to add a switch and plug all the devices attached to the WAP hub on to the switch than by connecting the switch to the WAP will give you a smoother network reliability...
Yes, that made perfect sense. I would gladly buy a switch in hopes of fixing the problem. Unfortunately when I took another look at the router it turned that it is a switch after all. I guess there is no magic bullet for us, but thanks for your help!