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Keith,
What type of antenna do you have at the AP? If you don't mind, I would like the power of the AP and the antenna gain and type and any significant cable lengths or connectors.

Are the engineers saying that you don't have enough power? At one mile, you should have plenty of power. I know they have asked you this, but are there any obstructions? Is there anything behind either of the antennas (such as buildings etc)?

If the equipment is functioning properly, then it seems to me that there is a problem on the RF side, which is what I think you were leaning towards.

How are you calclulating your bandwidth? From the Internet or a speed test utility and an FTP server?

Thanks!