Time Capsule wi-fi streaming issue (Netflix, Hulu Plus)

I have a bit of a strange problem, hoping maybe someone can help out.

For my internet connection, I have AT&T U-verse 12 Mbps DSL and the 2wire hgv3600 modem/router.

Previously, my PS3 and Xbox 360 were connected wirelessly to the 2wire, and I could stream Hulu Plus and Netflix to either system, both services in HD. On my two laptops (an HP with Windows 7, and a MacBook Air with Lion), my download speeds were a consistent 1.0 MB/s.

Recently, I bought a Time Capsule. The TC is wired via ethernet to the 2wire modem, and running in bridged mode (so it only uses the 2wire's firewall). I have disabled the wireless on the 2wire, and now I use the TC as my wireless network hub.

Now, strangely, I get faster downloads - 1.3 MB/s. But the problem is that Hulu Plus and Netflix will not stream in HD. On both PS3 and 360, BOTH services stream in extremely low quality. On the PS3, Hulu Plus has an option to force HD, but if I do that it would only play for a second or two, then skip/stutter... basically unwatchable.

Wireless signal shows full bars.

Wired is not an option.

So... what am I missing here?? How can my download speeds increase, yet my streaming quality severely decreases?

Has anyone had any experience with this? My searches seem to be coming up empty

Thanks for any help.

Update:

As a test, last night I re-enabled the wireless on the 2wire, then connected the PS3 to that one instead of the Time Capsule, and Hulu Plus actually streamed in HD.

So it's definitely something to do with the Time Capsule, but I just have no idea what it could be.

Any ideas??

I'd hate for this to be a waste of $300 if I can't even use it for everything it's supposed to do...

So I ask about it in the Apple store, and the 'genius' response: "It's definitely not an Apple problem, it must be an issue with Microsoft's network."

Right... because Microsoft's network affects BOTH my PS3 and 360 streaming Hulu and Netflix... which works 100% perfectly with my other router...

I was so dumbfounded I just had to leave.

Thanks, Apple. Very helpful.