|I know that G is 54mbps, however i understand ill never see that speed.|
This is true. However, you should see approx 80% of the total bandwidth when transferring. Especially in a LAN PC to LAN PC situation.
If you're only getting 1 Mbps, well, that's not 80% of 54 Mbps is it, so something is not right with that.
If you have any other wireless clients on your LAN try some transfers between them and the two PC's having the issue. Does the same thing happen with one or both of the units?