Router problem or DSL Modem?

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We had approx. 50 people connected wirelessly to a (Linksys WRT54G) wireless router with a DSL connection (Motorola- supplied by AT&T) and while there are 30 or less people connected everything works fine. When more than that are on, we lose the connections and have to reset the router and modem. Then it works ok for a short while & then same problem. I tried upgrading to a Linksys WRVS4400N router and it worked great for 2 days, then also failed. What can I do short of paying the high prices to have a T1 installed? Is this a router problem or DSL problem? Is there a difference in modems that maybe a new modem would work?
 
50 users is too many for one router although they may not all be on at the same time. You may have to set up at least two or more routers. It is fairly easy to do although not just any type router will work with this configuration. Higher end routers do it. I know Cisco routers will work in multiple configurations. In essence you will set up two or more routers with the same SSID but each on different channels. So you need to go from your DSL modem to a switch and then separate ports on the switch to individual routers. In addition you need to set the routers as access points. Even like this two routers/AP's my not be enough for 50 users which is a lot for wireless.
 
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