Stable your connection?

If you're on wireless, I'm afraid there's not much you can do. It's the nature of wireless, since wireless has a slight delay.

The newest patch is already out, and can be found on www.beyondunreal.com home page. As far as the ATI driver, I don't know. I use NVidia.

All I can suggest is try different channels on your wireless base station; if you have 802.11b, try channels 1, 6, and 11 (the others are simply overlaps of those three), and see which one works best for you. If they all suck, all you can do is either move closer to the base station, or buy a booster antennae of some sort. No kind of software can help you with this.

You may also try repositioning your antenna - when I set up wireless in the studio, I was getting dropped constantly; I moved the antenna 2cm (yes, a measily 2cm!) and it's been rock solid ever since.

You can also look for higher-gain antennas; I think you can get up to +13dB without needing an fcc permit (in the US that is.)

Remember, the majority of consumer-grade wireless products run at 10mW, which is less power than your headphones use; it's not going to go through too many obstacles before it starts to fudge up.

I use a LinkSys WRT54G wireless router in conjunction with my Apple Airport Extreme card for my iBook. Using 802.11g I get pretty decent signals all around my house. I have the router on the second floor, and get 3-4 bars anywhere on the second floor or the first floor, though I haven't tried in the basement yet.

In fact, I have a TV on between me and the router, a wall behind the TV, as well as another computer inches from the router, and I have a full signal bar (4 bars) on my Airport Extreme. 54Mbps is my current speed.

If you're only on 802.11b then the max speed you can get is 11 Mbps, so your speed will be adversely affected by other factors, like Huggy said.

My advise, if you aren't on 802.11g, is to go for that, or just hook up through Ethernet when you play to keep your speeds constant.

You sure it's your wireless? I've been using a wireless Netgear 802.11b router for about 1yr and have never had a poor connection in any game. You might want to check out NetStumbler. While it's mainly used for sniffing for wireless networks it updates status on several things including the signal strength in realtime.