Hello everyone, since I've never seen this answered on the Internet I decided to post my findings myself.
Ive been able to configure the 2WIRE 2701HG-B Modem/Wireless Router to have a higher connection retention rate. I reduced the frequent connection drops in all my household Internet electronics up to 95%. I hope this will do the same for you all.
Ive heard and I have experienced as well that Macbook Pros cause connection drops as well with this modem. I own a 13 inch Macbook Pro and it was giving problems until I did this.
I also use a VoIP service, I have a cordless phone (not sure frequency) and I have a television and an Xbox 360 and Wii. Please be sure to separate the router/modem at least 10 feet from such devices that could cause interference.
Please note, do this at your own risk.
Go to »gateway.2wire.net
Log In with your system password.
At the top click Broadband Link
Proceed to the Advanced Settings Tab
Check out the DSL Line Selection make sure its not on Automatic
If its on Automatic switch it to Line 2 (Outer Pair) and observe the DSL Modems lights. If they dont become green again after a short amount of time switch it to Line 1 (Inner Pair); you must click Save for each time you switch the line for it to take effect. If it remains green on Line 1 (Inner Pair) it was probably the connection problem. Automatic mode I believe has a tendency to switch from Line 1 to Line 2 resulting in a drop of your connection.
Remember to save your configuration.
Next after having done the above, proceed to the Firewall section and go into the Advanced Settings Tab as well.
I found that having NetBIOS and Remote Management off yields better results.
Save the settings, a window will ask you to confirm your settings.
I found that there is no need to have static IP addresses in the common household. So DHCP works fine with this configuration.
Now for the Wireless Settings:
Make sure your SSID Broadcast is enabled.
My Wireless Channel is set to Channel "1 (2412MHz)" you may need to play around with the wireless channel if you experience wifi drops but your DSL remains connected to the ISP.
Set Wireless Network Security to either "WPA-PSK" or "WPA2-PSK" and assign an encryption key.
Keep in mind no MAC filtering is required.
On the Additional Settings make sure your Wireless Mode is set to 802.11b/g
DTIM Period (Seconds): Remains at 1.
Maximum Connection Rate: 54Mbps
Power Setting: Unless your house or area is huge you can set this to a low number like 4. The higher the number the farther your DSL Router broadcasts its signal.
Now for the advanced portion of this (recommended), if you want to see your 2Wires statistics and refresh your connection, continue on reading:
Go to: »gateway.2wire.net/mdc
Sign in with your system password.
Observe the left panel with the bold Broadband Link section.
Click on Summary the Summary page opens displaying information about your DSL connection. Note the Reset buttons next to Broadband Link and ISP Connection. Clicking on ISP Connection Reset will give you a DHCP Release on your modem but it shouldnt turn off any lights on your modem. The connection will re-adjust itself automatically. Its a good idea to recycle/reset the modem once in a while.
The Broadband Link resets the entire modems connection along with the ISP Connection and makes all your devices connected to the network lose connectivity to the Internet. Your connection will be re-established automatically after less than 3 - 5 minutes.
In order to assure a healthy connection, I reset both of these and waited for them to re-establish and then unplugged my router/modem for 5 minutes. Plugged it back in and it hasnt lost its connection. When the 2WIRE Modem loses its connection in the statistics page itll show up as a DSL Link Retrain. You want to get 0s on that section of the statistics since it means that your connection is 100% Healthy.
To check the Statistics under Broadband Link click Detailed Statistics. A page riddled with numbers appears. If you experience frequent connection drops, they will be logged under the Link Retrains section, observe how many youve had since your last reset. Now that your newly established connection was set, we can go ahead and Reset the Statistics. Reset the statistics and observe how you will now get a bunch of 0s. The more 0s you have the better.
Close and re-open your web browser and surf the web. You are done! Enjoy your Internet connection!