Ok.. I've been working a little bit to troubleshoot this thing. This is what I've done so far tonight...
I disabled my motherboard's onboard LAN in the Device Manager and no change in the performance of my wireless client.
I removed the original Orinoco driver and installed the one that TallGeese linked for me (ver. 7.4). That was an ordeal in itself because WinXP kept locking and giving me BSOD's when I tried first updating the driver and then tried uninstalling the driver. I finally got the new driver installed and it's still acting flakey if you ask me. No change at all in the functionality of the USB Gold Client though. It still connects in the beginning and then cuts out. It will come back temporarily after that, but not long enough to load a web page.
I still get locks in WinXP when I try to do something like change the channel on the wireless client and click ok. It just hangs on me and I have to reboot usually. I just don't think that these drivers are very good for XP.
I also found out that when I click on the menu to check the status of the card while I'm not getting a signal, it says that the card is not functioning and that the driver is not ok. When I get a green status meter, it says that the driver is ok and that the card is working fine. So.. That makes sense. When the card is working, it's working and when it's not, it's not.

I was thinking that the driver was not ok because that's what it was telling me, but it only says that the driver is not ok when I lose the signal.
I tried unplugging the 2.4 ghz Sony phone system and no change. If I unplug the phone and I don't get a dial tone, the thing is not sending off radio waves, correct? I don't think so, but I just don't want to be missing anything here.
I made sure that my SSID was the same for my router and client. I double checked that a few times.
The WEP is disabled and the channel was set the same on both the client and router. I will add WEP later. BTW.. When I was checking status, it said that the firewall was disabled on the router. Is this the WEP? By having it disabled, am I disabling the firewall or is this something different?
I tried channel 11 and channel 1 and it's still not better. I tried both channels with the phone system unplugged and no change. Also, it was originally set to channel 6 by default and there is no change in function of the card when I change the channel on the router and client. I've got more channels to try, but I really don't think that this is my problem.
One other thing that bugs me. When I go to that web address to configure my SMC router, it asks for a password. If I put in a password, it won't allow me to log in, but when I don't put anything in for a password, it just takes me to the next menu page. What's with this?
I can't think of anything else. I will probably give Orinoco a call tomorrow. I don't think it's the SMC 7004AWBR that's giving me the problems. I wonder if I got a bad Orinoco USB Client or something?
Thanks again!!
Sal