WLAN for 250 Users, 3 WAPS, 1 SSID

My client needs a new WLAN solution. Their preexisting setup, is simply 3 Netgear home office APs with individual SSIDS. These APs start to lock up and prevent access at around 200 client connections.

The WLAN needs to support 250 simultaneous clients without locking up and preventing access.

My replacement solution is:
-Install 3 Cisco AP 541N Wireless Access Points.  
-Each AP will use the same SSID
-Each AP will run on different channels.
-WLAN will be on a different subnet from the main network (VLAN is not supported)

Historically, cost has been the deciding factor for IT projects.

Am I correct that this should work?  Am I missing anything important?  Is there a better solution?
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Depends on the physical layout.  Sight unseen and knowing that the 3 netgears are providing enough coverage and are simply getting overloaded with the volume of connections, then yes, your solution would work.

I would also contact Netgear directly (phone call to sales) and ask if they have a competing solution that they'll guarantee and would they be willing to do a trade-in?

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Wireless Networking

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