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I have just bought a $30 wireless router which claims a transfer rate of 150Mbps.

Can that really be true? Or is this with an assumed compression or some other marketing fine print?

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Well did you test it and see if it worked at 150mbps? – Simon Sheehan Sep 10 '11 at 19:13
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There's no reason it can't use the 150Mbps protocol in 802.11n. Just keep in mind that like all other current wireless technologies this speed is unswitched half-duplex. It's nowhere near as good as the same 150Mbps would be in a wired network. Also, like other wireless technologies it's susceptible to interference and airspace conditions. The 150Mbps is a theoretical max that is seldom reached (again, unlike wired networks, where published speed is often is the actual speed).

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Very interesting! I had no idea it was half-duplex. You mentioned the 802.11n protocol. Should I use that? Default was set to 11bgn mixed. I can choose between: 11b only 11g only 11n only 11gb mixed 11bng mixed. – Louise Sep 10 '11 at 19:34
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bgn mixed is okay, as long as both your router and the wireless card in your computer support n. – Joel Coehoorn Sep 10 '11 at 19:35
It is a Macbook I have. Does that support n? – Louise Sep 10 '11 at 19:39
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it depends on the macbook. but know that mac's can be finicky when talking to some of the cheaper non-apple access points/routers. – Joel Coehoorn Sep 10 '11 at 19:42
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