I assume you have 3.0.4 and have done all the usual logging reduction and speed patches with Preware? (see the sticky elsewhere in these forums) Without those patches, the TP can occasionally stutter, but if you've done that you almost certainly have a router/network problem. I use YouTube fine at home, just watched a 20 minute news program without a hiccup, and the TP's hardware is more than up to the task of just streaming some YouTube video - with WPA on, using the FiOS generic wireless router. You definitely do not need to overclock the TP just to watch streaming video.
Originally Posted by BlueBellThunder
Two thoughts - one you are too far away from your router or you are getting intermittent interference in the wireless signal, or two your current security settings in the router are somehow TP unfriendly. Just to see what happens, I'd reconfigure the router with security settings entirely turned off and see whether that works - just open the network entirely. If that fixes it, then you know that is the problem and then you just need to select a different security protocol. Then like the other poster suggested, try WPA instead of WPA2 and there are usually a couple of other choices as well, depending on your router.
The other thing I would try if the WPA thing doesn't work (and I did this for my xbox when I was having similar issues with latency) is to just give the TP an assigned address and then put it in the DMZ outside the firewall. You really don't have to worry about viruses with the TP, its market share is so small no one will ever pay any attention to it, so it can safely roam the web without protection.