ISSUE RESOLVED!
I am a PS3 owner and gamer.. I did a hard reset on the router and redownloaded the update and loaded. I then proceeded to do a complete reconfiguration of the router for the ps3.
dhcp reservations
I had to give the ps3 an access policy
Had to open ports for ps3 in gaming
Had to do special application for ps3.
In doing so i have now seen a whole new router and connection. It is blocking the incoming ports it should be blocking and is allowing the ps3 to now properly handshake with PSN network and COD4 server.
My signal is now solid when connected to the game server as it should be. I had tried every configuration i could think of so I thought and had no luck. This configuration is perfect, no drops, solid connection at my full speed, no dropped packets.
Will make a post for ps3 owners looking to configure their router.
P.S Lycan, do not know why I had to do all three configs but it seems to be the only way to get this router to work as it is supposed to.