Problem adding computers to SBS 2008

I am having difficulty connecting computers to a new network. I have a fresh install of Windows Small Business Server 2008 running on a brand new server installed in our office. The old server died so I started from scratch.

This is what I've done so far:

Domain created during install, XXXX.local

Enabled DHCP on server, disabled on router, available IP range 100-254
Server IP, 10.X.Y.2
Router IP & Gateway IP on server, 10.X.Y.25
Configured router with ISP DNS Servers, 65.32.1.65, 65.32.1.70
Ran the Connect to Internet wizard. No errors

Ran Configure DNS Server Wizard
1. chose create a forward lookup zone
2. chose this server maintains the zone
3. zone name XXXX.local
4. chose allow only secure dynamic updates
5. chose should this DNS server forward queries? YES, entered ISP DNS 65.32.1.65, validated OK
6. Finished wizard

Added Users to Active Directory

I cannot get any computers to connect to this new domain. With SBS you have to use a web interface on the server at http://connect or bring the connect utility on thumb drive to each machine. This fails on every computer either way I try it. If I try the web interface I get sent out to the internet to connect.com. If I try the launcher.exe I get: there was an issue with downloading the Connect Computer application.

The client computers can access the internet, but they can no longer communicate with each other. All the computers were on another domain from the dead server.

The IP settings in the client machines seem to be fine. Example:

IP 10.X.Y.114
Mask 255.255.255.0
Gateway 10.X.Y.25
DCHP 10.X.Y.2
DNS 10.X.Y.2

Can anyone tell me what I did wrong or need to do now?