I don't have the Wireless-AC version of the 7260. I have the "Intel Dual Band Wireless-N 7260" and I never have any problems or drops with it running 16.1.1.3 drivers. I stream music and 720p videos from my usb flash drive connected to my N150 2.4 GHz router without any intermittent jitters or pauses. At my university WiFi which uses "Aruba Networks" wireless products, I connect at 300 Mbps 5 GHz band and get their full 100 Mbps download speed. Uploads peaked at 40 Mbps at my university.
http://farm4.staticflickr.com/3796/9778224311_5008754249_o_d.jpg
http://www.speedtest.net/result/2971336966.png
I'd say there's an incompatibility with the 7260 AC version with your computers and/or routers.
Edit: It seems that you're the only one whose having problems with the 7260 since almost all of the people in this thread have no problems with the 7260 AC and they're impressed with it's 35-45 MB/s throughput.
Message was edited by: theveterans veteran Reason: Additional Info