Thanks everyone for your help, Dave's comments about connecting vie ethernet proved helpfull. At first there was no change, still dropped out the connection every time. Changing the setting on the ibook. under Network--Network Port Configurations I had both internal modem and built-in ethernet checked, after unchecking Internal modem it worked!!! I've tried to find how to do this by reading about half a dozen books on OSX, none mentioned even looking at this control panel!
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