Rightyho, I can tell your on BT, are you running a BT homehub? (if so what version?) also sometimes caused by beboxes or, god forbid, one of those speedtouch abominations...
Firstly win7 rules out a lot of the OS issues, if your internet is diconnecting then the usual culprit is your router having a flap. Somre routers have specific issues with number of connections through steam, always worth checking you've got latest firmware.
NOW THE IMPORTANT STUFF:
Pop into the game console and run the following:
rate 7500 (also try 9999 if that doesn't improve things)
cl_updaterate 20
cl_cmdrate 30
Now try playing, see if you disconnect. (if you quit game these settings are lost)
If this makes things better, you want to add those commands permanently to your userconfig.cfg
More advanced stuff:
I'm guessing, based on the highly unsecure (admin/admin) combo on telnetting to your router that it's a homehub. If you're happy telnetting to your router then run connection unbind application=GAME(UDP) port=27***-27*** to unbind the game ports
Am not sure how up you are on telnet, so try the rate/cl_blahblah bits first then can talk you through the telnet part if you need it.