Good Evening,
One more thing to add, on the SME v7 RC3 box, I've also modified the hostnames section:
contentfilter.domain.name Self x.x.x.1
ftp.domain.name Self x.x.x.1 Modify Remove
mail.domain.name Remote x.x.x.2 Modify Remove
proxy.domain.name Self x.x.x.1 Modify Remove
wpad.domain.name Self x.x.x.1 Modify Remove
www.domain.name Remote x.x.x.2 Modify Remove
NOTE: I hid the actual IP and domain name for security. All the x.x.x is local IP addressing.