I live a way from the exchange and past ADSL modems have reliably connected at 2.0Mbps. I received at 2704n and it only seems to manage 1.5Mbps. Do people think this is a faulty unit, or is it just less capable?
I think it's more likely to be due to the difference in performance of different devices on your particular line. The ADSL aspect of the 2704n has a fairly good reputation, but every line is different, what works well for most people might not work so well for you. Which past ADSL modems are you comparing the 2704n to? The 2704n ADSL stats from http://192.168.1.254/statsadsl.html might be interesting. You do not have to use the 2704n, any other ADSL modem/router will work (unless it's one from another ISP and is locked to that ISP).