RE: iTunes 5 kills Internet Connection
Sorry to burst your bubble but iTunes 5 is not the culprite. Just because your DSL light is active doesn't mean your actually transfering bits of data back and forth. Now if you have to reset your router to get a connection then there might be something with the router itself but certainly not iTunes. Since you have uninstalled iTunes and it still happened a problem can't be caused by software not installed right?!?
I would reset both your router and your DSL Modem (unplug the power for each for 10 seconds then plug them back in). The devices may just need to be reset I know it happens at home with my network to.
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