I have been having this issue with the hardware and firmware which i can replicate easily

Description with 2.4 kernel:

After flashing the router and while in full default settings i change the lan ip to something like: ip: 10.0.0.20  and netmask: 255.255.0.0

Using luci:

After reboot the router fails to assign  an ip to a computer. Other times it the dhcp works giving the computer an ip like 10.0.0.113 but the router cannot be pinged, telneted or accessed with luci.

Using cli:

uci set network.lan.ipaddr=10.0.0.20; uci set network.lan.netmask=255.255.0.0; uci commit network; reboot

The result is the same. After reboot the router fails to assign  an ip to a computer. Other times it the dhcp works giving the computer an ip like 10.0.0.113 but the router cannot be pinged, telneted or accessed with luci.

Description with 2.4 kernel:
Right after installing it; i decided to turn on the wireless using luci.

Result :
Same as with kernel 2.4. After reboot the router fails to assign  an ip to a computer. Other times it the dhcp works giving the computer an ip like 10.0.0.113 but the router cannot be pinged, telneted or accessed with luci.

Differences from 2.4 and 2.6:

I was able to turn on the wireless with 2.4 and access it after.

Troubleshooting:
I used  windows xp sp3; gentoo linux & backtrack linux.

All times i was unable to connect  i had to go on recover mode. In all tests i rebooted the operating systems and router.
All firmware builds are official from : http://downloads.openwrt.org/backfire/10.03.1-rc5/

My question:

Anyone else has had the same or similar problem with Asus WL500 GP v2 ? Initially i thought this was GUI related or network only related.