I updated my firmware last night and will report as to whether or not that resolved the wifi issue. For me, I would get a notification in the middle of streaming a movie or show saying that wifi has been lost. I would click continue, it would load for a couple seconds and then play again. This would happen about 4 or 5 times in an hours time and even happened when the Capsule II was about 10 feet from the router. I don't think it ever actually lost connection, but just had a little glitch in the Matrix. I'll report as to how it's working after this update.
I still love it and think it's one of the most useful gadgets I have. I've used it in almost every room in the house and even had it on in the backyard last night! I was going to watch some BBT while cleaning the pool, but got distracted watching the show and then it got too late. Why do today when you can put it off for tomorrow, right?