This is an AT&T DNS problem. I changed the DNS to google DNS 184.108.40.206 and now the internet test works.
My previous DNS setup was using AT&T (220.127.116.11 and 18.104.22.168). With that it failed.
AT&T here too without these errors.
Here is what my 2Wire has:
Primary Domain Name Server: 22.214.171.124
Secondary Domain Name Server: 126.96.36.199
An update after DirecTV and AT&T were not able to help. I have made the change to assign my STBs static IP addresses and have done the advanced network settings using the new Static IP addresses and the Open DNS server (188.8.131.52). It now works fine. AT&T and all their infinite wisdom will not let you change the DNS at the router, hence the need for Static IP addressing. I had the same DNS addresses listed above (Primary: 184.108.40.206 and Secondary: 220.127.116.11). If anyone knows what's up with AT&T's DNS I would really like to know.