Hi RSen,
did changing the DNS server solve your problem ?
I am in Bangalore and facing the similar problem since I took BSNL broadband.
I changed the DNS but of no help.
I have Huwai 3002G4 modem.
I am still have 3-10% packet loss at any given time duration. (with or without wire).
I have MS-Vista(home edition) on my HP laptop.
I searched a lot on net, complained with BSNL and from last 10 days no action from BSNL

Any help will be appreciated.
I am also looking for other service provider in my area.