I have noticed that on the switch port 1 (which connects to the router) is going mental.
This concerns me. I assume they are doing this even when there's no load on the network from the PCs?
Does it start as soon as you switch on the router and hub or is there a delay, or does there need to be some traffic first before it starts?
Ditto if you fire both of them up with the cable disconnected then plug them in?
If that's the case I suspect router and switch are jabbering away to each other for some reason and hogging the physical link, hence the unreliable higher layer connectivity.
I have seen this type of activity once between a PC and a router, but it went away again and I didn't get to the bottom of it.
A really good debugging tool would be a hub (not a switch!) that you can connect between the two, and then plug a PC running Wireshark into the hub to sniff the activity on the link.
I can't think of anything in the router settings that would give you a headache connecting a switch, assuming a computer directly connected to the router has connectivity. A switch works at the MAC layer (layer 2) whereas anything configurable on the router will be layer 3 and above. It should be transparent. That said, it's worth finding out the router password, etc. You never know when you might get a problem that requires it.

Have the two ever worked together correctly?
Just wondering if one or both have an implementation problem that renders them incompatible?
Kevin