I too have the DIR-825 HW:B1 and Comcast, but with no problems. My original firmware worked fine, but I upgraded to 2.02NA, and it works fine. In my case, I have the SB5100 Motorola cable-modem.
When upgrading, I did have a few "WTF" moments when figuring-out how to configure the thing. Initially, I used the CDROM, but that installs an old version of the firmware so I don't do that. Interestingly, I found if I did a VERY long reset (about 40 seconds), the firmware gets wiped, and the DIR-825 prompts for the binary file when you go to 192.168.0.1. Since people talk about the difficulty in downgrading firmware, I found this interesting.
Anyway, under WAN/LAN settings (can't recall which; not in front of router), all I did was use the manual config, and tell it to use DHCP (get the IP address via the modem). I didn't have much luck with the "wizard" configuration in the firmware (much less the CDROM).
I also diabled "DNS Relay" under Network settings, but that seem unrelated to your immediate problem.