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You should try the following:

rosrun image_view image_view image:=/camera/image _image_transport:=theora

...with /camera/image the image topic you want to display. Using image transport decreases a lot the bandwith required by the streaming, but it requires CPU power to compress the data on your robot.

The only other option is to stream different data: lower resolution, black and white only, etc.

PS: yes, wifi router usually behaves very badly when they reach theirs limits. Freeze, bad performances, reboot, etc. So what you experience is probably an access point performance issue.