Try from the router as well (Wireless > Site Survey) and adjust manually so that you have a clear channel on both sides. Could be that the router is getting interference. If that doesn't work, try a different version of the Merlin firmware. Do you have thick walls or anything?
Failing all this, faulty router? If you've had it for a while, is this a recent thing?
Settings all appear to be fine, only things I would change (provided that you're only using 802.11n devices) is to change preamble to short and explicitly set the wireless modes to N only, just for the sake of being tidy.
That does work well, but of course you'll need to stand the router up.
Just seen your other thread, the N66U is one of, if not the very best consumer N router on the market in terms of wireless performance. So as above, it's either a settings problem, faulty router, or you have exceptional requirements that are beyond the scope of any "consumer" product.