I to have a similar problem,
Whenever running Xolox I loose internet connection and the only working solution so far is to unplug the cable modem and replug it in. This loss of connection affects all computers on my network not just mine. The problem begain to occur after installing Windows XP Pro. I suspect that the software is not entirly compatible with the OS

My Computer:

AMD 1.33 GHz
512MB DDR RAM
D-Link PCI 10/100
Windows XP