Router interference? Internet problem.?

Solanka

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I have a PC, Inspiron 1420(built-in wifi) and a D-Link dir-300 wireless G. I have a 5/mbps(it says 100.0/mbps on the bottom dunno why) dsl connection along with the modem. My PC is wired by an ethernet cable to the router and my laptop just connects through wifi signal. Now onto my problem.

Every now and then my internet connection is going crazy. Sometimes, it loads some sites but other times, it's stucked on saying at the bottom "Looking up www.yahoo.com" then finally an error message. I have to wait for random times (usually 2- 5mins) for it to load the site and have the connection again. It happens to ALL sites and transactions like playing online games.

Now here's the thing, my neighbor has a router too. My Psp scanned and found "TP-Link" with 52% signal. Now here are my questions. Does my neighbor's router interfering my router's signal? If so, is there a way to ignore it and set up my own channel? I'm really not a computer geek but I can follow instructions. Thanks and have a nice day.
 
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