Implementing NLB in Unicast: Help w/ Static ARP or VLAN

I have a PowerConnect 5324 and have some issues that I believe need addressed on the switch. Having never managed a switch before, I did figure out how to connect via the serial terminal and accessing everything via CLI.

I have two terminal servers configured in Unicast mode with separate NIC's. The cluster nics are configured to 10.25.1.35 using the NLB Manager. The other NIC's are on a separate subnet 10.26.1.11 and 10.26.1.12.

Initially, everything was plugged into the same switch (Dell PowerConnect 5324). I know there are some MAC issues with switches, so I've also tried pluggin all 4 cables into a 3Com hub and uplinking it to one port on the Dell switch, and that makes no difference at all. I've even set the MaskSourceMac reg key to 1 as well.

My Problems:

1. Server 1 (x.11) can access the internet and ping other servers on the 10.25.1.x subnet (thru the cluster NIC) and also access Server 2 via the 10.26.1.x subnet, however when using the NLB Manager to view the cluster it fails to connect to (or properly resolve) Server2.Domain.Com.
2. Server 2 (x.12) can only access Server 1 via it's IP address thru the 10.26.1.x subnet. Trying to ping any server names on either network does not work.
3. More interesingly, if I pull or disable the cluster NIC on Server 1, Server 2 will then take over and I can access the internet and ping anything I want!
4. A side note, pinging other servers on the network with the "ping x.x.x.x -t" command is steady and normal on Server 1 however on Server 2 the timing fluctuates??? I've tried multiple NIC's to rule out hardware.
5. I'm guessing my problem lies with the switch being confused with the MAC addresses somehow. I've managed to connect to the Dell switch and attempted to add and static ARP entry, but I am not sure if this is the right thing to do. Perhaps a VLAN is the way to go...?

If I do a "show bridge address-table" from via CLI, I can see several entries for the "g16" port, but none that are the same.

!!! When I attempt to add a static ARP entry, I receive the message, "Arp interface does not match IP interface port." !!!

Thanks!

I am new at this, though have been racking my brain and reading hundreds of forum posts over the last several weeks to get this far...any help would GREATLY be appreciated as I'm very close to completing this...

Thanks!