Managed to find the solution by accident !
It appears to be the location of the laptop ! (Just also saw the question from John2007 re: this).
The laptop is always in the dining room (downstairs) while the router is upstairs in the bedroom.
On Friday night I took the laptop to the bedroom (about 6 feet away from router) because my daughter had a birthday party downstairs and when I noticed sluggish performance on the laptop I checked the speed and obtained around 4 Mbps consistently on the wireless and around 10 Mbps on the wired connection. Today, after the party, the laptop came back to the original location and lo and behold wireless speeds are back to normal (10 to 11Mbps) !
Date Downstream Upstream
26/07/09 21:11 9786.50 Kbps 935.01 Kbps
26/07/09 21:10 10920.33 Kbps 934.98 Kbps
26/07/09 21:10 11037.20 Kbps 934.43 Kbps
25/07/09 17:51 3541.19 Kbps 893.99 Kbps
25/07/09 17:50 3834.60 Kbps 885.29 Kbps
The puzzle for me is why is the wireless speed so low when the laptop is so close to the router ?
And why does the speed double when the laptop is located downstairs - where the signal has to go through many thick walls ? (The Windows wireless connection icon shows it is connected at 54 Mbps at both locations)
I vaguely remember seeing a post a year or so ago saying that placing the PC very close to the router had negative effects because of signal interference etc ?
I'm sure there is a scientific explanation for what I observed and someone will come forward with it.

Thanks for your help anyway.