I hate to say it but you just told me what the issue is.
As for the APs. They were replaced completely with the latest Cisco version. AIR-CAP3602E-A-K9. They are being managed by a central controller based on a RRM algorithm. So all APs talk to each other and change their power settings according to how close their neighbor is. They are all running between a 5 and 7 which is from 6.5 to 1.8 mW.
The Self Healing, load balancing and "Auto RF" features in the controller are good tools if you are running wireless office, especially where coverage is line of sight like a cubicle farm. THere isn't much mobility or roaming occurs in an office, going from cube to Conference room? All the AP's are at 10' -12' from the floor with minimal obstructions. So talking of the AP's to each other works when the clients are only 12' to 50' away. But in a warehouse your AP's are at ceiling level, 25' to 40' high, there is racking full of inventory below in rows. All the talking between the AP's is at ceiling level above the racks & inventory, they hear each other fine, so no power adjustments are made. But your client device is on the floor, 25' - 40' below, maybe 3 to 4 aisles away, there is no monitoring at that level by you AP system, how can they react to client needs?
6.5 to 1.8mW is pitifully low power. We survey warehouses at 50mW power, even at 8.5mW you can't get more than 25' down an aisle from the AP and expect to stay connected. I had a local 1mm square foot warehouse local to my office, they installed their Cisco Lite AP's with a Cisco controller and set Auto RF & Load balancing when the warehouse was empty and no racking. They moved in and stored items on the floor with little issue. Then came the racking and inventory was placed in the racks. Terminals were dropping all obver, nothing stayed connected. I went down to look at the system and found the AP's at 8mW power at 42' up with racking at 36' height. I couldn't get 25' away from an AP before signal strength dropped and the terminal roamed looking for another AP, but none had a strong enough signal. Now they installed the AP's according to our site survey, based on 50mW output and approximate coverage of 35,000 square feet per AP, so they had 30 AP's in the Warehouse of 1M Sq.Ft. I turned off Auto RF & Load balancing, set the output power to 17db (50mW) and set data rates to 1MB required and enabled all the rest. (1MB required makes the Beacon signals go out at 1 MB so they are easily recognizable over the rest of the radio traffic) In 5 minutes everyone was working flawlessly.
I didn't ask how many AP's do you have installed in what sized area?
Unfortunately you probably don't want to hear this since you bought this controller to automate the AP's, but the algorithm for the automated functions are NOT built for a warehouse, but for an office with wireless PC's and Voice over IP phones where clients aren't far away, aren't that mobile and have throughput requirements more than coverage or roaming.
Secondly your 7535G1's are 802.11b only radios, they have an output power of 30 -50Mw depending on which radio was installed. (USI was 50, Marvel 30). the maximum data rate they can do is 11mps, so 1MB required gives you maximum coverage and allows terminals to roam freely.
Firmware
D286 is F9 from 2006
F244 is F1 from 2004
Most current level is F30 from 2010. You could use a firmware upgrade but it will do very little for you if the AP settings aren't changed.
You still in Danville?