SOLVED!
Well,
As it turns out the problem with the EPIC started to mirror the same wierd behavior I was having with my ASUS netbook, however the ASUS would eventually connect so I didnt pay any mind, but when both wireless devices now were having problems I decided to investigate my OPENWRT ASUS WL 700 GE wireless adapter configuration.
As it turns out I decided to change the Channel and set a few more options in the config file, now everything works like a charm and faster than ever.
The changes are the TXPOWER (which I hadnt set before) as well as I changed the 802.11g channel. I also did not have compression, burst, and other advanced options set on the adapter.
here is my new entire openWRT wireless config file under /etc/config
config wifi-device wl0
option type broadcom
option channel 6
# REMOVE THIS LINE TO ENABLE WIFI:
# option disabled 1
config wifi-iface
option device 'wl0'
option network 'lan'
option mode 'ap'
option ssid 'SKYNET'
option encryption 'psk2'
option hidden '0'
option isolate '1'
option txpower '18'
option bgscan '1'
option wds '0'
option key 'deprecated'
option bursting '1'
option turbo '1'
option compression '1'
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