Yes I agree.     The solution I found to both problems was selling my router on Ebay and buying a competitors device.   It worked perfectly.

I have this problem too, although as I understand it from googling - the 127.0.0.1 message can be ignored as this is a special IP address (Google it).  I am however getter a 'dnsmasq: failed to allocate -1 bytes' error every 2-3 minutes in the log fi...