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I've had this problem as well. My router is an older linksys model, though. It is not one of the "XBOX live approved models you can find on the Xbox.com website. Anyway, the default MTU setting for the router was set below 1420. Once that was fixed, my connection wasn't perfect but It was acceptable. So just set the MTU for the router as high as possible, above 1420.
Good luck.
MTU means Maximum Transmission Unit, live needs 1364 minimum. Judging by your posts saying that your is in the 1400+, I say its time to get a router.
try these.
Netgear N
Basic Netgear wireless G
There more out there, but I didnt want to trawl through the US site. Its so much different from the UK site.
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