Hi,
for those of you still dealing with this problem....... (last post seems to be 4/07)
Below is a link to a firmware upgrade from Verizon support that supposedly fixes the problem of sporadic connectivity, specifically routing problems. The first obvious system is that the DSL light either blinks, or turns off completely.
http://business.verizon.net/help/dsl/?case=versalinkfix
make sure you download the correct version by checking the model number on the bottom of the modem/router.
That being said, it's been installed for a few hours now and seems to be working. Hopefully this will fix the problem completely. After verifying that the problems were not my PCs the next step was to replace the device, and in speaking to Verizon, if you've had the device for more than a year they will not replace it. You will need to purchase one at your expense, which since its for a service they provide I think is silly. For the speeds I was getting when it worked (or lack there of) I will probably switch ISPs if it comes to that.
Hope this helps - Good luck