My ISP is Virgin Media in the UK and I am on their 50 Mbs fibre optic service.
The ISP modem is a Virgin Media model that is stand alone.
I've tried it wired and not had a problem, however the issue can come and go at different times of the day so I may have just missed it.
I've tried changing the signal mode to G as well as mixed G and N as it is now and the issue still happened, however both the USB adapter and the router support N so surely that shouldn't cause a problem?
There is other wifi in the area, three on channel 11 and one on channel 6, however their signal strength is only 10 - 15% so they are quite a bit away. I'm currently on channel 4 and have tried a few other channels (8, 12 etc) but still had the problem.
The house phone is wired.
The other thing I forgot to mention is that it doesn't just happen on my USB adapter, it also happens on my laptop too at the same time so doesn't appear to be an issue with the USB adapter.