Wlan router restarts when streaming music to Airport express

Hi guys,
Yesterday I received my brand new Airport express which I plan to use for streaming music from iTunes to my Stereo. Unpacking and installing the lovely looking AE was like x-mas eve and birthday all in one .
After the installation where I set up the AE to join my wireless network. My wlan is a WEP 64 bit encrypted one, I had some problems adding it to the network with the wizard of the AE tool, but this worked just fine after using the manual set-up procedure instead where I chose WEP 40 bit in the AE tool. I also upgraded AE firmware as a part of this process.
So, the AE pops up nicely in iTunes, and I started streaming music to them, and it worked perfectly... for 10 seconds. Then the music stopped, the play-bar in iTunes stopped, and I also noticed that my laptop (Acer laptop running Windows Vista) lost the internet connection.
After some investigations where I switched off volume adjustment on remote speakers in iTunes and reseting and re-installing the AE, I noticed that the reasons for the problems seems to my wlan router re-booted whenever I started streaming music to the AE. My wlan router is a Zyxel Prestige 660, and it has worked flawlessly for the last two years. The AE is connected to the network, it gets an IP address, and it shows up just fine in the IP list on the router, that is before it restarts... And once the router re-starts the logs are gone, so it's not possible to see what's happening in that end.
Has anyone ever experienced the same? What can the root cause be? Changing the wlan encryption is unfortunately not an option since the router is pre-programmed from my ISP. I'm considering changing my modem, but I'm reluctant to spending 150 bucks on a new modem if this may not resolve the issue.
Any comments or suggestions would be highly appreciated.

Part 2: The mystic restart of the router was solved through changing to a Thompson Speedtouch 780 (luckily my ISP sent me a new wlan router and I didn't even have to pay).
However, the problem with the music breaking up when streaming from iTunes to the AE remains; The stream is broken after just a few seconds, and it also seems to mess up other internet traffic on my laptop . I've tried with the AE in a number of different locations, even 1 meter away from my laptop - nothing works.
As it is now, the AE is useless. What a disappointment .

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Message was edited by: Spitta9999
Message was edited by: Spitta9999

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