Just ran into this myself. What a pain. This was working with earlier firmware releases, but in the process of updating and wiping the router and setting everything back up again, I'm not sure how many releases back it was!
Linksys, are you listening? We need this fixed. What good is a router that you can't configure? I'm still testing, but not even certain that the internet DNS server settings are taking. If not, i'm going to be REALLY pissed. I just bought 4 of these routers, and if this doesn't get fixed in a hurry, will probably have to return them all.