Windows 7 - PC to PC lag with Media Center ( help

I am having latency and buffering issues when trying to stream my movies from one desktop PC to another using Media Center. I backup my DVDs using DVDFab and store thems on a hard drive. I then use My Movies to store the DVD information. The desktop that stores the DVDs is a Quad Core with 8 GB of RAM Windows 7 x64 and is connected via CAT5 to the Cisco Router I have (Linksys E1200).

My media center PC which is hooked up to my TV is a Dual Core with 3.5 GB of RAM Windows 7 x32 and connects to the network wirelessly using a Cisco USB dongle (AE2500). When I try to stream to the media center, it skips constantly and seems to never fully buffer. This happens when I open the movie in Media Center as well as opening the VOB file through Windows Explorer. The distance between the media center and the router is about 25-30 feet with a very thin wall between (running Ethernet to the outer is out or question because it would take over 100 to run the cord without making it look horrible.

Since the movies are on the PC, it is solely network so my ISP or Internet bandwidth is not in play. Before anyone blames the USB dongle,here is what confuses me. I have an Xbox 360 that I can stream movies wirelessly as a connector (the same process as the PC except an Xbox) and there is no lag at all, so it is odd indeed.

I appreciate anyhelp I can get with this since it's been bugging me so much. Let me know if you have questions. Thanks.