Are you running STP on your router. Could be looping up somehow. Im almost thinking its something with your firewall. Does she have third party virus software installed? Such as AVG? that has a firewall?
If the switch module in your router is sending a certain packet that is blocked by the firewall, it will send it right back to the switch, in turn the switch will try and find a place to send those packets again (Unless spanning tree protocol is running) and will essentially loop up, and bring down your network.
Let me know what happens.
*edit*
It REALLY REALLY sounds like a layer 4 problem to me. Turn off all firewalls, even the one in your router. See if that works, and try forwarding all registered ports to that lappy.