First I add that some of these replies need clarification.
There are two kinds of overlap, one is channel overlap where the frequencies overlap, and the second being signal overlap.
You MUST have signal overlap for all devices to have coverage in all areas, or even most devices in most areas.
Secondly, there are various schools of thought for frequency overlap and some manufacturers even suggest putting all APs on a common channel. In the case of roaming IP phones this case becomes even stronger as a phone may hop across APs while in a call. This of course depends much on the hardwae of the phones and antenna placement and design.
Let us assume that we had a large open area that we wanted wifi coverage in. Now lets take a pole and place it in the middle of the area. Now we place 4 directional 90 degree antennas on the pole, each 90 degrees from the other . In this situation one may make a strong case for having all APs on the same channel to facilitate roaming. In theory there is little signal overlap but all frequencies overlap.
Now we have an open area with walls on four sides. and place an AP on each of the four walls. The signals WILL overlap from each of the 90 degree antennas , so we may want to consider using separate non overlapping channels on each AP , however there are only 3 non overlapping channels. 1, 6 , and 11. So instead we do the best we can in North America this might be 1, 4, 7, and 11 , each AP having SOME necessary frequency overlap. Of course in a perfect world this might be better accomplished with three APS in a triangular configuration.
In my home I have toyed with APs on Same channel and separate channels and in the end I see little coverage difference., I do see however that some devices such as wireless IP phones can more easily hop to another AP while in a phone call. I see that in most areas I do not have more than 2 overlapping signals and each on channel 4 at present. As I sit here I can launch wifi seeker on my android and see either of the 2 available APs and even connect to either. This of course is easier to test with separate SSIDs but more practical to use common SSIDs fopr everyday use.
Yes. This is normal. Wifi is a shared media network and you'll get lots of jitter when multiple clients want to talk at the same time and buffering occurs.
Things to try to reduce jitter:
change the wifi channel to the three non overlapping channels (1,6 or 11) These are generally better bets - use a wifi scanner to check your environment
look for potential sources of interference and turn them off or move them (microwaves, cordless phones, bluetooth, baby monitors)
remove other wifi devices from the same network (iphones, tivos, etc) - less devices means less radio interference
If you access point supports it: connect one host using a 5ghz channel and the other using a 2.4Ghz channel.
Best Answer
There is no "intelligently", if you have 2 networks on the same channel or on channel that overlaps this make interference between signal of different network. If others network are quite far there will be low interference and it will still work almost correctly but if the different network are too close interference will be high and you will get slower throughput and higher packet loss.
It's better to have a network on channel 5 and one on channel 6 than both on the same channel, this will reduce interference
Usage of channel 1, 6, 11 and 14 (14 is not allowed in most countries) or 2, 7, 12 or 3, 8, 13 or 4, 9 or 5, 10 guarantee no interference but if you need more channel because of channel used by neighborhood using 3/8 or 4/9 with 1, 6, 11, (14) is "better" than adding 5/10 or 2/7