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I was going to say try to update the router's firmware but you said you tried that. Have you verified if the problem is in the router or your cable modem? I would say that is the next step. Ping the routers IP address (I believe the default in linksys is 192.168.1.1) and see if it stops when you are having a problem. If it doesnt, then log into the router while you are testing and try to ping the cable modem. This depends on the ISP, I think mine is 10.0.0.1.
If that all works fine, it could be a problem with the ISP, so you may want to try calling them.
Once you determine where the problem is, I would try a replacement first. It could just be bad hardware that you are pulling your hair out on!
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