I realise this is very subjective and dependent on a number of variables, but I'm wondering what steps most folks go through when they need to diagnose packet loss on a given system?
I am a network engineer, so I'll describe this from my perspective.
For me, diagnosing packet loss usually starts with "it's not working very well". From there, I usually try to find kit as close to both ends of the communication (typically, a workstation in an office and a server somewhere) and ping as close to the other end as possible (ideally the "remote end-point", but sometimes there are firewalls I can't send pings through, so will have to settle for a LAN interface on a router) and see if I can see any loss.
If I can see loss, it's usually a case of "not enough bandwidth" or "link with issues" somewhere in-between, so find the route through the network and start from the middle, that usually gives you one end or the other.
If I cannot see loss, the next two steps tend to be "send more pings" or "send larger pings". If that doesn't sort give an indication of what the problem is, it's time to start looking at QoS policies and interface statistics through the whole path between the end-points.
If that doesn't find anything, it's time to start question your assumptions, are you actually suffering from packet loss. The only sure way of finding that is to do simultaneous captures on both ends, either by using WireShark (or equivalent) on the hosts or by hooking up sniffer machines (probably using WireShark or similar) via network taps. Then comes the fun of comparing the two packet captures...
Sometimes, what is attributed as "packet loss" is simply something on the server side being noticeably slower (like, say, moving the database from "on the same LAN" to "20 ms away" and using queries that requires an awful lot of back-and-forth between the front-end and the database).
I will start by using packet capturing tool such as: wireshark (on Windows) and tcpdump (on Linux terminal).
I will also check the firewall configuration (host firewall as well as network firewall).
Isolate, then eliminate.
Find the smallest subset of paths with the problem. Do this by testing out different combinations and/or distilling user reports. Don't forget to factor time in the equasion. Maybe it's only packetloss on all traffic to a specific network, or maybe only the wireless clients are suffering. Take different traffic types into account (rate limit on pings). Find the most reliable and easily repeatable way to test it.
Then eliminate potential causes. Reduce traffic on the links (temporarily), remove interference sources from the spectrum, disconnect certain clients. Eventually you'll find the source of the problem.
You can sometimes take shortcuts by looking at packet dumps or take guesses (it's always bittorrent). Also, tell your professor serverfault is awesome.