I have IE7, and this also happens a lot to me. Do you have ZoneAlarm? If you do, shut it down. I just got the new update of it, and then my internet started playing up. While I had ZoneAlarm up, my internet went in and out. Close ZoneAlarm, and then this will stop (hopefully).
If you don't have ZoneAlarm, then I can't help you right now.
There is no standard service pack...
I think he means that he just has basic Windows XP, he hasn't installed any service packs