I’ve been having the same problem with the verizon fios router. It is in fact garbage. Rebuilt 2 test machines, one vista, one xp, both still having the same problem. I’ve been looking at firmware alternatives or bypassing the local wap altogether, like you did.
There’s no hard evidence in the logs that I could argue with Verizon but it in positively drops the wireless network at random for extended periods of time and in no particular pattern. I’ve only seen this type of problem on Linksys WRT54G/AG’s where the wireless stops working altogether. Never had a problem with the Netgear’s.