2wire modem/router loses all connection when laptop connects wireless

I am having the exact problem (krustyzworld) had. I have an ATT 2701 2 wire modem/router that drops off when I use my wireless laptop, it works fine when I use a Ethernet cable connection. I have tried a second ATT 2701 with the same results. The only difference between (krustyzworld) and myself is I have the correct power source and my power light don't change (it stays on steady). What happens to me is that first the internet light goes out than the green dsl light goes flashing red, in less than a minute everthing returns to normal until the next random drop off.