Have you tried to open the ports on the router for SK. This site tells you how to do so for your router http://portforward.com/english/routers/port_forwarding/Linksys/WRT54G2/S...
If that doesnt work, then I would try a DMZ. It can be found in the Applications and Gaming tab. This option is basically like a direct connection. all ports will be opened for your specific IP on the router. Use this option as a last resort. Although I do not recommend you use it long term, basically use it to troubleshoot.
You can find your IP address by using the command prompt:
- Depending on your version of Windows (assuming your running Windows?)
- XP:
Start --> Run --> type cmd. hit enter. --> A little black box with text should appear. Type ipconfig and hit enter. You should see some text output, one of which will say IP address. Write that down as you will need that to forward ports on your router and in the DMZ option. - VIsta/7:
Start --> type cmd and hit enter --> A little blak box with text should appear. --> do the same as above.
I would definitely check firewall settings as well. Again, for troubleshooting it is simpler to just disable it, then see if it works.
I will assume you have already been through the standard "Reinstall Spiral Knights and Java" routine. If not, then I would recommend you use Revo Uninstaller for that, as it has the ability to completely remove most if not all things associated with said program. Do the same for java. Revo can be found here http://www.revouninstaller.com/start_freeware_download.html
If none of the above work, then there is a strong possibility that your ISP is blocking the ports required by Spiral Knights to run properly ( as a safety precaution any ports not required by most everyday use applications and services tend to get blocked). I would give them a call and see if they can open them for you.
http://wiki.spiralknights.com/Performance_issues_FAQ#WRT54G_Series_Route...