WRT54GX2 intermittent connection and fw update woes

Hello,
I apologize in advance for the lengthy details but I felt it was important to explain everything.
I have had my wireless router for a few years now.  The router is in between a broadband cable modem and a Linksys phone adapter from Vonage.  Haven't really had any issues.  Wireless Router is also connected to desktop PC running XP
Lat few days have been getting occassional error on desktop saying that 'netowrk cable is not plugged in" on bottom right but haven;t thought much about it because Internet connection and phone still working fine.  Then last night tried streaming a movie with laptop and the movie kept dropping out every few minutes.  I have only streamed like this once before and it worked fine.  I have also used my laptop and Wii for a solid two years with this wireless router and no issues until last night so it has worked.  Also, confimred with Comcast that my Internet connection is solid.
First thing I did was notice my firmware (fw) was very old (1.01.06) and decided to update.  In hindsight I should have followed the steps on the website but what I did was go to the Linksys website an download the latest fw and then accessed router using webpage and downloaded.  everything seemed fine during installation of fw but instead of getting a "success screen" after the 30 second countdown screen, I got the "404 error and website could be found".  Needless to say I was concerned that the fw never took.
I never did a hard reset of modem but instead tried to get back in to set-up to see if new fw registered.  I tried my password and noticed it wasn't taking so more concerns.  I then typed "admin" and was able to get into webpage.  Inoticed a fw now of 1.01.22 so that was good.  However I noticed a majority of my settings were back at default. 
Unsure of how to proceed next, I started re-entering all of the data to match what I originally had (Now I know I should have saved my configuration and might have old one but didn't check yet).  I first entered my SSID and saved and that took.  I then proceeded to enable my security which was 128 bit WEP and then I tried entering a passphrase to generate a key but instead of gettign a key, I kept getting bounced back to the security pulldown menu to choose between WEP, etc.  I tried over and over to get a passphrase but couldn't.
So community, what should I do next at this point.  I realize I didn't follow all of the steps exactly for a fw upgrade. Should I set-up again from scratch at this point?  If so, what would be best way? Easylink Connect software? Run the installation CD? Will doing the hard reset resolve any of this that I didn;t do after the fw upgrade?
Ultimately, I am still not sure if the intermittent network drop outs will be resolved with the new fw.  Any thoughts on that issue would also be appreciated. 
Thanks again everyone!  Great community!
Message Edited by epie on 10-30-2008 10:59 AM

I just wanted to follow-up here for everyone's benefit.
I proceeded with the instructions for hard reset and disabled my firewall (Norton 2008) as instructed.  I still could not change the security settings and to make matters worse, my PC connection to the router throughout configuration kept degrading and I kept losing the webpage.  I tried different Ethernet ports on the router nad had the same problem.  I then connected my PC to spare ports on my Vonage router and had no problems so I think it is a router issue.
Any more suggestions?  Looks like it is time for a new wireless device.  Little disappointed this failed after 2.5 years in service.  Would have expected a little longer life.
Thanks,
epie

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