If you are able reach yahoo successfully then the routing and dns setting (hopefully) is correct.Are you able ping these pcs from anywhere? e.g. from the router itself? If not then check if any firewall is running on the pcs? Second check if any brow...
See if this link helps http://www.cisco.com/en/US/products/hw/switches/ps708/products_tech_note09186a00807347ab.shtmlCheck out especially the heading "Loss of Dynamic MAC Addresses with Distributed Switching"
What is the config of console on target device?A silly question - did you try pressing enter many times and wait for some time after the Trying .....Open line?