Hello sir,
If the problem is recent don't change anything. Many people suffered this issue past few days, but now it has been resolved. Are you still having trouble? Change settings only if the problem is presisting.
You get popups only from software programs that act as firewall. And perhaps
windows firewall (which I have disabled).
Your
ADSL modem firewall settings are a bit different and would not present popups. So enable ADSL firewall, other than DDoS protection (which can slow torrents or some P2P programs that send a lot of packets your way).
Something like this:
http://img156.imageshack.us/my.php?image=ero01ev3.pnghttp://g.imageshack.us/thpix.php
It is good that you have anti-virus. But I don't know its effectiveness in dealing with latest malware/adware so can't comment.
DNS won't affect connection stability. Although some would recommend that you put the openDNS addresses in ADSL modem. Like this:
http://img508.imageshack.us/my.php?image=ero01sx6.pnghttp://g.imageshack.us/thpix.php
Since you do not run firewalls, I would strongly recommend that you run the world famous
GRC Shields-up test. Run the test while torrent program is off/not running. In particular, check the three highlighted things:
http://img84.imageshack.us/my.php?image=ero01lf2.pnghttp://g.imageshack.us/thpix.php
You should read
this thread too.