Network drops my PC and only finds "Unidentified Network"

I just recently installed Windows 7 Home Premium 64-bit (SP1) on my custom built machine, and everything seemed to work properly, until.... One night I decided to run a reliable torrent program (yeah yeah I know) and it booted me off of the network completely. I power-cycled the network and the problem was resolved. Now it seems like the connection to the network will crash whenever there may be somewhat "excessive" LAN traffic, at least to and from my computer. Most usually when I get booted offline, it will act as if it's detecting a network, but never finds the correct one. After it goes through the network detection process it will tell my it's connected to an "Unidentified Network" but is not actually connected to any network, then it automatically resets my IP to something like 164.???.???.??? - I used to be into networking a little bit a while ago, like 5 or 6 years and I can remember setting internal IP addresses with 192.168.1.??? so this has got me pretty puzzled.

My LAN connection consists of: The Time Warner Modem -> Router -> 1st PC + HUB switch... HUB switch -> Xbox 360 + 2nd PC. I am having a hard time trying to figure out what the problem is, mainly because my Xbox 360 plugs into the HUB switch and works fine WHILE my PC (which is connected to the same HUB) cannot locate a network.

I noticed that my TCP/IPv4 settings were set to automatically obtain the LAN information like the IP, Default gateway and DNS. So I set them to static values that DO work properly because my LAN is active... at least until there is an increase in LAN traffic. Like I said it SEEMS to be the cause of the issue but I am not 100%, hence my reason for this post. - I am really hoping it's just a bad router, considering I have had the same one for a few years at least. (F.Y.I - I did upgrade the firmware on the router and it hasn't made a difference).

Any help would be immeasurably appreciated. I am just about at my wits end.

PC Specs
Case - Cooler Master Elite 430 RC-430-KWN1 Black Steel/Plastic
Motherboard - ASUS F1A55-M LX3 FM1 AMD A55 (Hudson D2) Micro ATX
Processor - AMD A6-3650 2.6Ghz APU with Radeon(tm) HD Graphics
GPU - AMD Radeon HD 6670
RAM - Corsair 4GB 240-Pin DDR3 SDRAM DDR3 1333
Hard Drive - Western Digital Blue 500GB 7200 RPM SATA 6.0Gb/s 3.5" Internal Hard Drive
Network Controller - Atheros AR8161/8165 PCI-E Gigabit Ethernet Controller (NDIS 6.20)
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More about network drops finds unidentified network
  1. Unidentified networks are more difficult to repair in Home Premium, since it lacks the Policy Editor in Enterprise, Ultimate and Pro that make it a 1 minute fix. I would try option 2 HERE to fix it in Home Premium.

    The 169.x.x.x address is a Windows default when it can't find a network.
  2. I will give it a shot when it disconnects again. It hasn't for sometime now. I am not really sure why not but I am not complaining lol.

    Thank you for your advice and your time.
  3. Yeah, with Home Premium it often just resolves with a bunch of messing around like disabling the adapter and reloading the drivers, eliminating the network and letting it reacquired. The problem is that sometimes it isn't an easy fix. Sure would be nice if MS would just add a policy editor to that version too.
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