Update (new suggestions)
I've upgraded the firmware for the router as I said earlier. Since then I have had less problems but still it does disconnect, it just seems to take longer time before it does. As an example, I've been able to use the internet for up to 60 minutes several times now, before getting disconnected, whereas earlier it usually took 20-30 minutes.
Anyway, a friend suggested that there may be a hardware problem with my network card and he suggested buying a new PCMCIA Ethernet card for 25$-35$ something.
I am considering this since it sounds like a fair and time-saving solution, when compared to other possibilities.
Another option is to take my laptop to a friend's home and connect it to his router (a different brand) and see if it works there or not.
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