Is my Wi-Fi router bad or is it my laptop?

I've had my laptop: Asus G750JW, for about two weeks now and it keeps dropping the wi-fi connection. My router is a linksys WRT54G2 and yes the firmware is out of date and downloading a dd-wrt seems like a hassle. The main computer that is using the router doesn't drop connection (hard wire), nor does any of my devices: iphone/ipad. I recently went to my friends house to test his Wi-Fi to see if it's my laptop or router. Everything was working fine for about two hours, then I got off and came back 30 minutes later and saw that the connection was limited. I've uninstalled and reinstalled the network adapter on the laptop, but that doesn't solve the issue. So i'm curious if it's my router or if it's my laptop.

Added (1). Also, if I were to connect via Ethernet cable, would any of this matter?

Since the laptop is new, it looks like a compatibility issue. I suggest you try upgrading your router's firmware.

Follow the steps mentioned below and check if the issue still persists.
Safe mode with Networking
I would suggest you to boot in "Safe mode with Networking"and check if the issue still persists.
a) Restart the computer.
b) Start tapping the F8 key.
c) You will get Advanced Boot Options Screen.
d) Select the option "Safe mode with Networking"

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