you have comcast as your isp, correct? I know that Comcast priorities <sp> voice packets over data packets. Vonage packets are data packets, not voice packets, so if there is a lot of people in your area that are uisng CDV (Comcast Digita Voice) your packets will be process later than the voice packets that hit the head in first, now, this will not lead to what problems that you are having with international calling, but it can cause some loss of words, and echo in the line (very rare though). Comcast is going to put Voice packets first over there network because they are in the telecomunications business and want to offer there customers a little better service.
As far as the American Tele-co not upgrading, traditional phone companys have not upgraded with the exception of Verision with there FIOS, they went through a multi-billion dollar upgrade to run fiber to the home, not the switch like ATT (formally SWB or know as bell system). Now with the introduction of the CLECS ie Comcast, Vonage, prepaid home phone service, magic jack, ect, that statement is not true. The cable companies has gone through a major upgrade in the mid to latter 90's, and they are a american tele-compay by definiton from the fcc.
packet loss and/or latency correctable by ISP. call them with the computer connected dir to the modem without the Vonage. Run this command from command prompt:
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