I have a Roku box connected to my 47" LCD and it streams HD movies at the highest quality with nary a single pause...and yes, that is via a wireless connection. Plus, other members of the household are often playing online games and surfing the web over the same connection at the same time. We have 7mbps RoadRunner.
If it is choppy i would blaim the computer. Maybe a virus checker is running at the same time?
Increase the priority of the software used while streaming. Maybe just "iexplore". Not sure if silverblight shows up as a process. Set them to "Above Normal" and hope they don't get stuck in a loop!
I've noticed that the slight choppiness seems to coincide with Netflix "high-usage" periods, like weekends and evenings. It sometimes smooths out after awhile. The PC is a dual-core with 4GB RAM, RAID array and pretty good video card with HDMI. It should be able to handle Netflix