I have a debian Squeeze KVM server hosted with an ISP. The server doesn't have much load (average 0.1) and has sufficient memory, low network traffic, low disk i/o etc etc. It's running standard LAMP setup, with all latest deb packages installed. No unusual software installed.
But when I ping the nearest gateway there is an average of 8% packet loss (cron job doing 100 pings every 10 minutes), sometimes as much as 40-50% packet loss, even though the server load is stable. Pinging the server from outside also gives packet loss.
What could be wrong here?