Lost wireless and repeated self assigned IP address

After I updated to OSX 10.5.6 my powerbook started dropping my wireless/internet connection, and adopted a self-assigned IP address. This happened whether I connected to the router via wireless or cable.
I was eventually able to change the system configuration files as suggested in previous posts, and reset my PRMU. This has worked for a wee while, but sometimes on starting up my laptop, the machine self assigns again.
I know the internet is available as I can access it from my iphone.
Then 20min ago, whilst surfing, the internet went down AGAIN, and self-assigned its favourite IP address.
I recently updated to 10.5.7, but the problem remains.
Is this a new problem or has it been going on for a while?
Also, is it a hardware or a software problem?
Any ideas?
Charlie

If you are able to connect initially and then it drops out I would look towards possible sources of interference. While most modern devices avoid this issue fairly well, it is a possibility. Devices such as cordless phones used to cause problems.
If it is dropping out while you are physically connected, I would perhaps check the settings on your router. Most models have a reset function which will allow you to reset it to factory defaults. Then you could reconfigure it and see if the problem persists.
The other possibility is that there is a software service on your macbook that is starting up and causing the network loss. If possible, I would attempt to initialize and reinstall all the software on your macbook. Note that this will wipe everything off, so make sure you make appropriate backups before reinstalling from scratch.
Once you have reinstalled the OS, you can upgrade it to the most recent version and see if the problem persists before installing any other software that may interfere with it.
You really need to go through a process of elimination to find out whether the problem lies with the macbook or the router. However considering your iphone works fine, I would look towards the macbook first.

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