I had this problem also and here is how I fixed it:
1) Update firmware to V2.06 (May 07 2007)
2) Go to your computer's Device Manager and look for your net card. Open properties and switch to Advanced tab.
3) Now you must find the place which allows you to set the connection to 10 Mbps Duplex. Hit Ok and close the windows.
4) Open your browser and go to 192.168.0.1 (default). Username: admin and no password. (default)
5) Go to Tools, Misc. Scroll to the bottom and enable 10Mbps/Full.
6) Reboot both devices; router and your computer.
Doing this helped for me and I have been able to use the router for a week without any disconnects.
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