I'm having exactly the same issues as described on this thread.
Ditto what hdobbie said - we urgently need an update please!
Rob - I tried changing the DHCP and IP address ranges on my HH3 last week and it made no difference, so I wouldn't bother wasting any more time on it until we hear back from the mods. It sounds to me like it worked briefly for Bubba but then stopped working after that - which is basically what happens to me every time I try a VPN, as it will always connect for about 20 seconds and then drop out.
Spoke to BT again today (6th time) and they are sending me another HH3, I told them that this wouldn't fix the problem if it had the same firmware or if it updates but she said it was all she could do. They are calling me back next week, and if the problem isn't resolved, I'm going to cancel my service.
I've also directed them to look at this page as they still seem to be in denial that its the home hub causing the problem!
I'll say it again: The support from BT on this is terrible!
FAO Mods/BT generally - if we don't have an update by tomorrow morning then I've got no choice but to email the CEO of BT direct to get this escalated. It's shocking how this is just being left to drag on with no updates at all and I am seriously considering changing ISP now as I can't just sit here waiting indefinitely when my VPNs have been knocked out for getting on for 2 weeks.
Nearly a week on and still no change - the same with everyone. VPN connection drops after 20 seconds - apparently I need to contact the "specialists" to help resolve the problem but this is not a free service!!
I had no issues before the firmware upgrade (188.8.131.52.184.108.40.206.37 (Type A), Now VPN is no More and DNS is Broken. Sort it out B.T.... Rant Over