Ajay,
Would you please give more details like(or check for your self) :
* What is the packet rate your are sending and receving
* What is the max/min/avg size of packets(UDP)?
* At what rate you started loosing packets
* What is system load
* What is Network interfaces capacity (in Mbytes/sec) for server/client machines
* What OS. Is server/client are in WAN type of setup
* Would it be possible to give breif snippet of your receiver's code.
* What is load of OS when you are running this programme
* What is the Logger you are using -- if load is causing problems
* What is the value for DatagramSocket: getReceiveBufferSize()
* What is the Thread priority for receiving the UDP packets
* Are the receiving packets recieved as fragmented(check via ethereal)
BTW, I was able to recieve UDP packets of sizes upto 1500(MTU of network interface) till 1500 packets/sec without loosing in java(that too 1.3.1) in java(with out use of JDK NIO) on PIII with 533 MHz and 256 MB RAM. I have not tried for packet-rates above 1500