WRT54G: Frequent, but intermittent Disconnects

I have a WRT54G that I've been using for almost 2 years now.  For the most part, the router works great, even though it will occassionaly drop my computer's [i]wired[/i] connection and often drop my Xbox's [i]wireless[/i] connection.  More recently, I have upgraded to Windows 7 and am experiencing very frequent, but intermittent disconnects which mainly appear to be on the wired end. 
Steps I've Taken Thus Far
Updated NIC drivers
Updated Router Firmware (Apparently 8.00.7 is the latest for my router.)
Reset router to factory configuration and reconfigured
Searched all over the internet for a solution
Basically, this is what happens:  I'll be online, usually playing a game or trying to d/l a patch for one and things will be great, but out of nowhere, the router's power light will start blinking and the little SES button (that Cisco one that lights up) will shut off - this is when I lose my connection.  Sometimes it's just temporary and the router will cycle, the powerlight will go solid and the Cisco light will turn back on.  Often, I have to unplug and plug the router back in to get it to cycle.  I don't think I'm losing connection to my cable modem as the Internet light stays active, but maybe.  So it seems to me that I'm mainly losing connection on just my own network.  The strange thing is that sometimes I can go for [i]hours[/i] without any trouble but sometimes I can't make it 10 minutes without losing my connection 3 or 4 times.
Any help?

Since you have done all the settings on your Router, and already upgraded the firmware on your Router... As you have mentioned that after a period of time, the power light on your router starts flashing and at that moment you are disconnected from all your computer...
Well i think its a problem with the router itself. I hate to say that but I think its time for you to get a New Router. 

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