I'm not really sure what's going on here. If like d3phx says yellow could be shown during a lag out, it could be the case that's it's your garden variety net lock up.
How to fix such a thing is quite difficult. Maybe use ping plotter to a QL server and see if you can find at which hop the lock occurs. If it's all hops it would seem to indicate something on your end, if it's the second hop or so, might be something your ISP could look into, anywhere else and the situation is grim. Can try something like wtfast.com to adjust your own routing but your ping is so low that you'd likely have a higher ping and/or probably be unable to significantly change the routing.
It could be the Wi-Fi, like if there's interference that happens and cuts out your connect. Depending on how close you are to the router you should be able to test this just by plugging directly into it.
thats my take on it. if im not even close, then i have no idea why i get solid yellow 999s most of the time when my modem starts flashing red.
Well, I was paying real attention to my environment while I was having these interruptions and then I realized something. When my wife goes online via her iPhone, I start having troubles with my game. That's just it. Last night when she was just watching TV, it was all OK for me. This morning it was also real fine but after a while problem started again. And when I checked my wife, I found her playing the app "wordz" online on her iPhone (90% of the time she is doing stuff with her phone she is playing that game). Can such a little app cause all this trouble? It's really weird but based on what I experienced, I don't see any other interference.
There are no problems with the connection other than that. I mean sometimes the interruptions are so intense that I look at a frozen screen for 5 seconds, and then I see another frame for a moment and it's frozen again for another 5 seconds and so on but when I immediately quit the game at such a time and open some youtube video, it's working just fine; no waiting, no slow loading.
If that happens it means that either the increased Wi-Fi traffic is disrupting your signal, which sounds kind of meh (and could be tested for by just plugging in to the router), or she's just grabbing the bandwidth of your shared connection. If that's the case you could look into packet scheduling and prioritize UDP traffic or w/e, so that your PC takes priority for the UDP traffic over her games which probably don't even need it.
So it's some additional device & cost to me(?) Is there any way to get over it by using just software?"Yes, there is such a thing, it's called QOS or quality-of-service.
It might help gaming "lag" issues ONLY IF there is other traffic on your LAN that is competing for bandwidth and causing your gaming performance to suffer as a result. If you are on a dedicated connection, like a DSL or Cable modem, and are the ONLY PERSON on that network doing anything network intensive (gaming, downloading, etc) - implementing QOS on your network won't help.
Basically QOS involves tagging each "type" of network transaction with a priority level that insures that the highest priority traffic (gaming, in your case) gets handled first, even though the network may be congested.
This type of scheme has to be implemented at the router level. This feature used to cost big bucks, and was a pain in the ass to setup. Luckily, today there are some custom firmware builds out there that can implement this on a $50 home router. Unfortunately, it's still a pain in the ass to setup. I put some links below for you. Do some research and see if this is what you need before trying to implement it. Good luck!"
Use traceroute, or better yet, ping plotter.
If the lag is in the absolute earliest hops, like hop 1 or 2 there may be hope of the ISP fixing it, like if there's noise on the line or some other hardware issue.
Past that you'll have to adjust routing somehow, and the only way that I know of to do this is by using a VPN such as wtfast.com or fixmylag.com (something like that I forget the url). With these you first connect to a hop of theirs, then on to the server, thereby altering your routing in some cases.
These have two serious drawbacks though:
1. They charge for extended use
2. You must ping very low to the VPN server they have or there's little chance that your connection will improve.
After that there's really not much you can do other than getting a different ISP. Sometimes upgrading the connect within the same ISP can help, like if you have their lowest plan, and then upgrade to a higher one, but no guarantees there and it is difficult to test.
Unfortunately connection difficulties, locks/high ping/packet loss/etc are the most difficult thing a gamer has to deal with. You either get lucky and live somewhere that has good connections or you're rich enough to get some high end business line/can go somewhere that has one such as a university.
Otherwise there's nothing you can do. ISPs do not care about high ping times/packet loss, or even low bandwidth. It's like as long as you can check your e-mail they consider you good to go. A technician can look for noise but that's about it. Plus, they will never under any circumstance admit that their network is to blame even if you have a mountain of technical evidence.
Sadly some players are forced to just take up a different hobby. Different games means different servers, and another chance for a good connect. For players is remote countries I guess their only choice is to play online games that can withstand a lot of connection issues.