I use Timewarner Cable here in socal and ive been experiencing the Lost Connection To Playstation Network bug which also drops my GP progress. Time Warner DNS has ALWAYS sucked. After reading this post on the capcom unity forums this solution has worked for me. Thanks to TongariDan.
Primary DNS: 184.108.40.206
secondary DNS: 220.127.116.11
This problem is not widespread. Ive seen only a small % are experiencing this and I wouldnt be surprised if the ones affected use Timewarner (Roadrunner) ISP.