Well, I've learnt a few tricks since I posted this. First of all, I ran a wire to the unit and now the vid doesn't skip. The audio stays reasonably sinced up as well although xvid support isn't that hot, if existent at all.
Apparently, there's two antenna jacks on the wireless card inside the unit. If you take it apart you can remove it from one and plug it into the other. According to others, the reception for wireless becomes acceptable and allows for skip free vid transmission.
I like it better, much better wired so I'm thinking I prolly won't return it after all. Is it work 2 bills? Time will tell.
Firmware updating is easy btw.