I was able to find the main cause of intermittent disconnections on wireless interface. Based on the information I gathered over internet forums and my research, I made following configuration changes which stabilized the connection. These settings are working when you have N Wireless adapter and a B/G Router:
Wireless Adapter Settings:
Update the driver to the latest driver.
Access the properties of your wireless adapter from Network and Sharing Center.
Click on "Configure" and select the "Advanced" tab. Make sure following configuration is in place:
(* I didn't find the configure, so I just go to Computer and right click select "Manage", then choose "Device Manager",
1. 802.11n Channel Width for bands 2.4 and 5.2 are set to "Auto".
2. Disable 802.11n Mode
3. Ad Hoc Channel 802.11b/g should be 1 or same as you have setup on your router.
4. Ad hoc QoS Mode, keep WMM Disabled - Disable it on router too. My wireless connection was stable once I made this change.
5. Fat Channel Intolerant - Disabled
6. Mixed mode protection - RTS/CTS Enabled
7. Roaming agressiveness - Lowest
8. Throughput Enhancement - Enabled
9. Transmit Power - Lowest
10. Wireless Mode - 802.11g
Uncheck "Allow the computer to turn off this device to save power" on "Power Management" tab.
1. Disable IPv6 completely. Uncheck "Internet Protocol IPv6" in Wireless
Connection Properties window. Repeat this for every other network
connection you have.
2. Make sure that you have latest firmware installed on your wireless router.
3. CTS Mode should be auto and WMM function disabled in your "Advanced Wireless" router configuration.
4. Use WEP or WPA Wireless Security only. Other methods have issues with 802.11n adapters.
5. Do not disable SSID Broadcast on your router. You don't need it when your network is secured.
Hope this helps.