Frequent Disconnects with a Router

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Hey guys, I'm hoping you can help me out with a problem I've been having:

I recently set up a wireless router in order to share my internet connection with a friend of mine. Things work fine most of the time, but these days whenever I use the internet for a while I get disconnected, and I can't access the internet again until I restart my computer completely.

I used to think that it may be because we were both using the internet at the same time that it would disconnect me, but sometimes I am just surfing web pages and it will disconnect me.

I look at the lights on the router and see that it's in heavy use. The internet light and the LAN light (connecting the router to my computer) are flashing intensely. Yet, when I switch off my computer the lights don't flash which means my friend is not using the internet. It is as if my computer keep sending information to the router until it can't handle anymore and disconnects. I really don't know what's going on.

If you could give me any ideas, I'd appreciate it immensely, and if you need any extra information, I'll be happy to post what you need.

Just for reference, the router I'm using is a NETGEAR wiresless router MR814.

Thanks.
 
Signal strength isn't an issue seeing as the router is on my end and I'm connected to it directly.

It seems to be happening during heavy internet use, but I'm not completely sure about that.

MTU Size (in bytes) is 1500. I'm not sure if it has always been that high, (I went away for a holiday so I'm not sure what settings were changed. Things used to work fine, though.) but could this size be the issue?
 
Naturally, the router has the latest firmware, right?

"Disconnect" means what? Do you have any software firewalls? How about disabling those? Do you use any p2p software? Maybe you have spyware on your computer that hogs the connection?
 
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