Hi Allen,
There are several possibilities:
1. That the router is really crap at picking the best channel.
2. That there were no other routers in that vicinity at the time your router selected the channel that it did.
3. That your router doesn't work well on the channel 1 frequency.
4. That your router is crap... not a major surprise with Netgear, although I do like the interface and the way the menus are laid out... unlike the Draytek Vigor I've been struggling with this week which really is bloody awful!
5. That the Router Fairy was having a bad day
