Thanks for the replies.
I'm still getting the drops, no matter if I host or join. Connection failure-connection to the server has timed out. My friend host and he gets dropped, if he doesn't then I do. He has to restart the game several times.
I use Gamespy for FlighSim X and the only real problems I have with that is when logging in, it tends to drop you several times during that process then once the game starts it runs fine.
I really think this is an important issue since it does interfere with the proper function of the game play. Ubisoft is allowing Gamespy to act as the server for the game so I think Ubisoft needs to address Gamespy for a solution, not the players.
If Gamespy moving to a new data center was suppose to be the solution to the problem, it didn't fix anything that I can see. I have my hopes up. This is a great game but haven't been able to play it long enough to get any real enjoyment out of it.