You seem to be having two separate problems and you need to deal with them separatly. I've experienced a similar problem with a PPPoE and your timeout issues. First of all update the firmware for your router to the latest available. You stated that the router ip address is 192.168.1.1 so i'm assuming it's a Linksys BEFW* router since DLink uses 192.168.0.1 for default. Make sure the DHCP service is working properly. You should be able to do ipconfig /release /renew at will. Just because windows says your adapter has a certian ip address assigned to it doen't mean shit; make sure you can always ping your gateway (192.168.1.1). The second problem you seem to be having is PPPoE timeout. There is an option in the Linksys setup to "keep connection alive" or words to that effect. I belive this checkbox is on the main setup screen or possibly under the 'advanced' tab. Sorry I can't confirm that for you but i'm not close to one. This setting will force your router to communicate with the other end of the PPP tunnel without user intervention thereby keeping the connection up. Good luck.
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