I finally got around to installing Linux on this 'seasoned' laptop and managed to the wireless NIC up and running, but now I have a new problem: the connection is dropping whenever there is a decent amount of traffic going across the network connection (i.e. downloading updates, ISO images, local file transfers). The link quality averages around 70 of 92 and never drops below 67. Any help with how to either stop this from happening or why it could be happening would be greatly appreciated.

Wireless NIC: Intersil Corporation Prism 2.5 Wavelan chipset (rev 01)
Router: Linksys WRT54GC

linkysys. Linksys routers have this issue, and not just with Linux. I've seen it before. Try updating the router firmware. If that doesn't work, get a new router, netgear is good.