I have had a simillar experience esp the signal fading in and out from Excellent to Poor and then back. There are some suggestions below order ed from cheap to expensive:-
1) Reorient your router, move it to an unobstructed are higher than the desk. Download a program called Network Stumbler and load it on your laptop. Then walk around your house and see what the signal radiation pattern is in the house. It shows you signal strentgh in a graphic.
2) Buy some external antennas for your router that have a 5 ~15 db gain and place them up on the wall and continue option #1 experiment.
3) think about investing in in home wifi extender that plugs into the AC socket near the router and another upstairs near where you use the laptop. There are two types. Ones that use the powerlines to carry the signal and the other just receive and retransmit the signal (repeaters)
4) Replace your router with a more current version that support 802.11 n protocol. The n protocol router from Netgear that i bought was amzinging more effective than my old Linksys 802.11g router.
5) route a cat 5 cable up the stairs from your router (cheap but ugly)