The only thing I can think of is that it’s not communicating with the gateway properly.
It’s, seemingly, is passing information through a loop. If you have a crossover cable, try one computer connected directly to the FOG Server’s network interface and try doing it that way. This will let you know if it’s the DHCP & DNS issue. I’d recommend, though, instead of a 5 port switch, if you have a router such as a linksys or netgear, you shouldn’t see the problem you’re describing now.
I don’t know what else to check. I understand you’re trying to make the server the “router” in this case, but that loop around seems to be causing the issue itself. Does your fedora system have named/bind installed as well?