Why on my ps3 does it say "access point not found" every 5 minutes?

Well he's sorta right in a way b/c Wireless G can only support up to 54 Mbps where if you plug in the CAT5 cable you can get 100Mbps. So he's just saying if you are using WiFi you must not be any good to care about the speed loss... He must have a straight fiber connection and never leaves the couch. Don't worry about him, I know alot about computers and I'd rather use wireless too... Rather take some loss, then dealing with the UTP cables..
 
But if you're playiing online, the slow link is not your router. Even getting "54 Mbps" (which you're not, due to overhead) is faster than 1.5Mbps DSL, 6-10 Mbps cable, and even the 15Mbps FIOS.

Home networks are always faster than your internet connection (unless you live in Korea). The issues with wireless are interference from other things (phones, microwaves, etc.). The 360 wireless adapter can do 802.11a, which is discreet from these devices, but you need a router that can do 'a'.
 
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