@dgreenb: Apparently there is a problem in resolving the hostname when the Gateway is set to Static internally. I’m checking if there’s a workaround. But anyways, the correct thing to do would be exactly what newmans_99 suggested. Set the Gateway to static in the router, rather than setting it in Gateway itself.
@newmans_99: I think what you are experiencing is a lot of packet collisions. I was able to duplicate this easily, and even verified it on the INSTEON Sniffer. Setting a little delay in the Gateway communications seemed to resolve it in our lab. Can you try to test it with this Firmware. Let me know how it works for you now.