I tried changing the wiring, I swapped the ethernet ports the LAN and
ADSL modem where connected to, I swapped the modem with an identical one
from a colleague of mine, I upgraded to kernel 2.4.29 all to no avail.
I then tried the 2.4.28-rc{1,2,3} kernels, and I found the 2.4.28-rc1
not to exhibit the problem, that manifests itself on the 2.4.28-rc{2,3}
kernels.
The problem is sparc-specific, a PC with the very same configuration
(Debian stable, plain vanilla kernels etc.) did not suffer any
connection drops.
I have seen similar problems due to high sequence numbers on the tcp
packets on some adsl routers. Took a while to discover that since the
connection misteriously ceased to work from some boxes after some time
transmitting data ok. Looks like some manufacturers such as efficient
networks adsl routers, doesn't follow the standards.
I'd suggest running tcpdump and doing some observation.