Losing internet connection (Ethernet, cable modem)

Hi,
Lately (the past month or two), I am tending to lose my internet connection. (I never would before.) I connect via Ethernet to my cable modem. My ISP tells me that if I am getting 4 steady lights on my modem (with the 5th flickering), it isn't the modem. (I was thinking of replacing it.)
Rebooting the computer will fix it. One minute it's fine, the next it may have lost the connection. When I lose connection, Network Diagnostics* says my built in ethernet and network settings are ok (green). The rest will vary (going on memory here), ISP, may or may not be green, Internet and server will be definitely out, when this happens.
* I have dragged it out of wherever it was buried and have it now on my desktop. It is VERY convenient to check what is going on with my connection problems. (I guess I have created an applet?) I recommend this to all.
I am considering re-installing the OS (archive and install) but am hoping someone can offer some suggestions for me to try short of that.
Disk Utility and Tech Tool Deluxe don't indicate any problems. I can try the Apple Hardware Test. I am hoping this isn't a hardware issue as I cannot afford a new Mac or other repairs. I can live with rebooting if I have to.
Thank you.
John L

The colors refer to what Network Diagnostics shows. Network Diagnostics is an Apple app that pops up when Safari has trouble connecting. I don't use Safari but loved having Network Diagnostics pop up so I figured out a way to use it independently of Safari. I dragged it out of wherever it was buried, put it on my desktop where it became an app and I use it at will to see why I am not connecting.
It will show green, yellow or red as an indication of each aspect of the connection: built in ethernet, network settings, ISP, Internet and server (being Apple's server). Right now, all are green. When I can't connect, I'll have several going from server backwards that are red. If it can't figure out the status I get a yellow light.
When I've asked my ISP why I am getting disconnected, they said if all 4 lights of the modem are steady (and the yellow one flickering), which they always have been when I've been disconnected, then it isn't the modem or them. They have good tech support and I trust them.
I have replaced the modem once in the past and that fixed things. I may do it again.
So, I don't know. I haven't tried the Safe Mode approach yet. I'll see if I can do that.
Cheers,
John

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