Network Install of Ubuntu 7.10 Can't Access Ubuntu Archives

[giganet]

I am using Network Install to install Ubuntu 7.10 to a new server.

No problems getting TFTP server running and configuring DHCP3, when the target machine boots it is handed an IP within 1-2 seconds then immediately goes to the Ubuntu install screen.

The problem I am having is when connection to us.archive.ubuntu.com, or any other archive for that fact- I receive the following error:

Bad Archive Mirror
The specified ubuntu archive mirror is either unavailable, or does not have the valid release file on it.

The TFTP server is connected to a switch which is tied directly to a DS1 modem with a static IP.
In '/etc/dhcp3/dhcpd.conf' I have the DS1 router as the default gateway:

subnet 65.197.xxx.0 netmask 255.255.255.128 {
  range 65.197.xxx.100 65.197.xxx.114;
  option subnet-mask 255.255.255.128;
  option broadcast-address 65.197.xxx.255;
  option routers 65.197.xxx.1;
  filename "ubuntu-7.10/install/netboot/pxelinux.0";
  server-name "giganetwireless.com";

You can see that the gateway I have defined on the line 'option routers 65.197.xxx.1' points to the DS1 router.

What am I missing here?
Your input and suggestions would be appreciated...

Thank you

Regards