I worked with ESRI last week to get this issue resolve and it appears to be working finally. Please see my previous post on how to connect and let me know if you have any issues.
The issue was with the virtual directory settings in AGS, since we are using what is considered a “web farm” you need to use the DNS name (the public facing address) for all the virtual directory settings. Once we figured that out, everything started working great. I have also fixed a few small issues that we discovered along the way.