How can I reduce the number of packet drops during traffic bursts in RHEL 5?

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Issue

udp packet received errors in netstat -s are incrementing during large bursts of multicast traffic
I am experiencing packet drops and/or poor network performance when I receive large bursts of network traffic
Are there any kernel settings available to increase the amount of packets that can be processed in a short period of time?

Environment

Red Hat Enterprise Linux (RHEL) 5

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