Lord C,
I'm seeing this same issue with Jasager v1 right. Initially the router worked fine, but for some reason after a while, it would stop issuing my laptop a DHCP address _UNLESS_ I had another WinXP computer on the network turned on with ICS enabled, in which case everything worked fine and my Jasager handed out a correct 192.168.0.XXX IP address instead of getting stuck at 169.X.X.X (connected to Jasager with limited connectivity.) Strangely though, if I manually set my IP settings on the laptop for a 192.168.0.XXX network, everything also worked fine.
I also setup a Linux Ubuntu box with ICS so my laptop would have internet access once connected to Jasager and I was seeing the same thing as I did with the WinXP setup. However this time, Jasager refused to give out an IP address so I was foreced to manually set static IP in order to get my ICS to work in Linux.
FYI, about the same time my Jasager was doing all this, it started act strange. Everytime I did something in the Karma interface, I would have to close the browser and restart it to see any changes. The changes that I made weren't being updated in realtime anymore. A minor but annoying glitch. Hopefully v2 has got some kinks worked out. Digininja, have u seen any of these bugs before during ur testing?