Should i get a new router? (more)?

I live in an apartment, currently i have an ipod touch, 2 iphones, 1 tablet, 2 laptops all wirelessly connected to a $20 G router bought in 2008.

for the past few months, i have noticed that many devices would randomly disconnect from the Wi-Fi, it usually takes a few minutes to reconnect, but it is very annoying.

i'm resetting the router, i have tried changing channels, still the same problem.

should i buy a new router? I'm looking at a 25$ N router.

Added (1). this modem is separate from the router

also, i have the cheapest internet cable plan; i download at 360kbps

I had the same problem w/ an older G router, constantly disconnecting and having to reset the modem and router all the time. I recently upgraded both the modem to a DOCSIS 3.0 and router to wireless N and it's made a huge difference.

I have an 802.11 ac router and couldn't be happier… Although mine cost over $200 but you get what you pay for.

If you can find an N300 (dual antenna) router, the dual antenna diversity may improve coverage even with N150 or G specification devices.

Is the existing router also a modem, or is the modem separate?