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Its the duplexer. I have an antenna about 20 feet up and had the same issue until I replaced the duplexer. Easy way to tell is to turn the repeater to low power (This is one of the things that increased range for me) If you get a little more range then you know for sure, but of course this doesnt make up for the duplexer being installed backwards, or if it is way out of tune. As you have just started I do not know your skill level so Ill explain what the problem is: A duplexer separates the transmitter and receiver signals, thus anything the transmitter is putting into the antenna shouldn't be able to get to the receiver. When the duplexer is damaged, out of tune, or installed improperly, the receiver can still hear local signals through general proximity and even by using the jumper as a sort of antenna. This would be why you can use the repeater when you are close up. However when you leave the signal fades away, just as it would if you placed a portable next to the repeater. The transmitter doesn't help as its signals also overpower any other signals and causes what we call "De-sense" which is a situation where the transmitters signals are blocking any other signals from getting into the receiver. De-sense usually occurs when no or a slightly out of tune duplexer is used. It would seem from what your explaining that the RX side of the duplexer is out of tune causing your de-sense. The other cause would be crapily built duplexers. China has flooded the market with these stupid things and I've been a victim of their lower prices. Since I upgraded to a DB BPBR duplexer I have not had an issue with de-sense. Check to see what duplexer the seller has sent you. if you have a flat-pack (Notch type duplexer) perhaps he can upgrade you to a BPBR (Band pass/Band reject) type duplexer for a small fee. Never hurts to ask and made a world of difference for me.

1: Wifi works in the 2.4, 4.9, and 5 GHz band while GMRS is in the UHF (460-470 MHz) band so you shouldn't see any RF interference, however there may be electrical interference if using a cheap transformer. (This would be an audible hum over your voice as you transmit) 2: Midland and Baofengs are ok, (I have a Baofeng that I use as a loaner radio for family members) Personally I prefer Kenwood radios, using 380 portables and 880H mobiles. They are easy to program via computer and have a few features the baofengs and midland's don't have. Recently I started using an 8180H which has even more features on it. It all depends on what you plan to do with your radios. For me, being able to use work frequencies was the reason for upgrading to the 8180. 3: An antenna in the attic does work however just getting it to outside can result in a drastic increase of range. For the past two weeks my antenna was in the attic due to work being done on the roof, it got the signal out but not too far. When I returned it to outside I realized what a difference a sheet of plywood can make lol. 4: As Cleveland said, the traffic you are hearing could have a code or a mix of codes set up, they may also be using a repeater which could let you talk as far as 40 miles away. On top of that, GMRS repeater owners are now adding linking computers and software to their systems which can allow a user from NJ to talk via radio to a user in CA. Information about repeaters and which are linked can be found on the MyGMRS.com site 5: See Cleveland answer Even though I started out as a ham, this site, this community even, has helped teach me so much. When there's a problem I have never seen a group come together to try and figure it out then wait to see if their answer resolved that problem like they do here. This is a great group of guys and gals from all walks of life with experience from the amateur radio community, emergency radio community, and even professional radio techs, so there are no shortages of answers to your questions.