Network problems on Mandrake 8.0 FREQ2

I have installed Mandrake v8 MandrakeFREQ v2 (I know it's Beta) and
everything is working well except the network will simply stop working
unpredictably. As soon as I restart the network using
'/etc/rc.d/init.d/network restart', it works fine for a while, then stops
again, and so on.
I have checked mail to root and found the following message (repeatedly):

>From nobody Wed Jul 4 07:14:15 2001
Delivered-To: root@localhost.home.cxm
To: root@localhost.home.cxm
Subject: ALERT servers/telnet: localhost (Wed Jul 4 07:14:15)
X-Mailer: /usr/lib/mon/alert.d/mail.alert
Date: Wed, 4 Jul 2001 07:14:15 -0700 (MST)
From: root@redrock.home.cxm (root)

Summary output        : localhost

Group                 : servers
Service               : telnet
Time noticed          : Wed Jul  4 07:14:15 2001
Secs until next alert :
Members               : localhost

Detailed text (if any) follows:
-------------------------------
localhost: problem connecting to "localhost", port 23: Connection refused

I have never seen anything like this before, so I am at a loss. I checked the
network with ifconfig:

eth0      Link encap:Ethernet  HWaddr 00:A0:CC:E7:0F:00
          inet addr:192.168.1.10  Bcast:192.168.1.255  Mask:255.255.255.0
          UP BROADCAST RUNNING MULTICAST  MTU:1500  Metric:1
          RX packets:618595 errors:0 dropped:0 overruns:0 frame:0
          TX packets:635860 errors:0 dropped:0 overruns:0 carrier:0
          collisions:0 txqueuelen:100
          RX bytes:281656270 (268.6 Mb)  TX bytes:112818312 (107.5 Mb)
          Interrupt:10 Base address:0xb800

lo        Link encap:Local Loopback
          inet addr:127.0.0.1  Mask:255.0.0.0
          UP LOOPBACK RUNNING  MTU:16436  Metric:1
          RX packets:210257 errors:0 dropped:0 overruns:0 frame:0
          TX packets:210257 errors:0 dropped:0 overruns:0 carrier:0
          collisions:0 txqueuelen:0
          RX bytes:35828800 (34.1 Mb)  TX bytes:35828800 (34.1 Mb)

netstat reports:
netstat -aes
Ip:
    796842 total packets received
    0 forwarded
    7 incoming packets discarded
    1549584 incoming packets delivered
    834643 requests sent out
    1039 outgoing packets dropped
Icmp:
    18057 ICMP messages received
    5446 input ICMP message failed.
    ICMP input histogram:
        destination unreachable: 12875
        echo requests: 2595
        echo replies: 2587
    15474 ICMP messages sent
    0 ICMP messages failed
    ICMP output histogram:
        destination unreachable: 12879
        echo replies: 2595
Tcp:
    21143 active connections openings
    0 passive connection openings
    5533 failed connection attempts
    0 connection resets received
    1 connections established
    630703 segments received
    682215 segments send out
    17194 segments retransmited
    251 bad segments received.
    2061 resets sent
Udp:
    146862 packets received
    1220 packets to unknown port received.
    0 packet receive errors
    134367 packets sent
TcpExt:
    28 packets pruned from receive queue because of socket buffer overrun
    ArpFilter: 0
    11056 TCP sockets finished time wait in fast timer
    28 packets rejects in established connections because of timestamp
    40296 delayed acks sent
    2 delayed acks further delayed because of locked socket
    Quick ack mode was activated 6355 times
    442593 packets directly queued to recvmsg prequeue.
    12425 packets directly received from backlog
    127873041 packets directly received from prequeue
    66454 packets header predicted
    248292 packets header predicted and directly queued to user
    TCPPureAcks: 66719
    TCPHPAcks: 37479
    TCPRenoRecovery: 7
    TCPSackRecovery: 571
    TCPSACKReneging: 0
    TCPFACKReorder: 0
    TCPSACKReorder: 0
    TCPRenoReorder: 1
    TCPTSReorder: 0
    TCPFullUndo: 0
    TCPPartialUndo: 0
    TCPDSACKUndo: 0
    TCPLossUndo: 2349
    TCPLoss: 236
    TCPLostRetransmit: 11
    TCPRenoFailures: 3
    TCPSackFailures: 769
    TCPLossFailures: 78
    TCPFastRetrans: 740
    TCPForwardRetrans: 20
    TCPSlowStartRetrans: 613
    TCPTimeouts: 12954
    TCPRenoRecoveryFail: 5
    TCPSackRecoveryFail: 106
    TCPSchedulerFailed: 13
    TCPRcvCollapsed: 617
    TCPDSACKOldSent: 15520
    TCPDSACKOfoSent: 157
    TCPDSACKRecv: 1
    TCPDSACKOfoRecv: 0
    TCPAbortOnSyn: 0
    TCPAbortOnData: 70
    TCPAbortOnClose: 216
    TCPAbortOnMemory: 0
    TCPAbortOnTimeout: 195
    TCPAbortOnLinger: 0
    TCPAbortFailed: 0
    TCPMemoryPressures: 0
------------
---Sorry for the long post----
Any ideas on what I should look at next?
I appreciate any comments.

Donn
dlshumway@earthlink.net