Hi Daniel,
Please set 8.8.8.8 for local DNS under Setup>Basic setup>Network setup>Router IP.
Also please disable the 3 checkboxes under the DHCP settings. (DNSmasq and authoritative thing)
If you still had problems, please set Wireless>Wireless physical interface>Network configuration>Unbridged. Then go to Services>Hotspot>DHCP interface>ath0.1 (for the unbridged wireless interface).
Reboot the router and try connecting again.
Steve