I installed 7.350 in vmware server 1.0.8 with eth0 set to "host only" and eth1 set to "bridged". eth1 was setup with a gateway IP of 192.168.60.1 and the "GW" box was checked. However it wasn't routing anything. I logged in on the console and found there was no default route set. I manually set it using "route add -net 0.0.0.0 gw 192.168.60.1 eth1" and then it started working.
You are correct. 'ip route show table default' gives:
default via 192.168.50.1 dev eth1 proto kernel
I can also see the default route in Support->Advanced->Routes Table.
So I must have had some other routing issue that seems to be fixed now. Perhaps something in the vmware config was causing it. I will try going through the install process again and see if I can recreate the problem.
