Not sure about the distance from the router. I've connected on "teh internets" with the Wii using a router that was inside a closed room, at the end of a corridor that connected to the living room, where the Wii was placed, on the floor and on the opposite side of the corridor entrance.

Also, I've seen on the Wii options that you can connect the Wii on a wired internet connection, but I'm not sure how that works. Perhaps through one of the USB connections on the console? I've got to take a look at the manual again, but I don't remember seeing that being mentioned there...

Regarding the controllers, I belive using a GC controller is better - cheaper then the classic one and it won't run your wiimote batteries out.

I'll try to use web msn messenger over the Internet Channel, see if it works...