The new XBox 360 is in a basement area below the first floor room where the older XBox 360 is located. I have tried connecting the WRW01 from 6' away I have tried from 6" away. I have my work laptop computer and another Windows Vista computer nearby. All devices are hard-wired into the network. The wireless router for the home is on the first floor in the furthest corner from this location.
When the XBox 360 upstairs is plugged in the WRW01 will communicate with it from the basement. In an attempt to switch it over I have unplugged the upstairs XBox 360.
I have also been successful in taking one of my other older XBox 360 controllers from upstairs XBox 360 and adding it instead as a controller to the downstairs XBox 360. There are no more than two controllers connected to either XBox 360.