Problems with webserver on 1C20 dev kit

I have focused recently on the ethernet part of my design and am using dev board with Cyclone I have received for my NiosII kit as an example.

I hooked it up to my LAN hub, the same hub my pc-workstation is connected. I am experiencing following problems:

1. Webserver is unable to get IP address from DHCP server when the network cable is plugged during board power up. When the FPGA is getting configured I see both LED on the Ethernet connector to be on and then they turn off forever. Hub is not showing "link" status with its LED either. The ethernet is dead and webserver times out to 10.0.0.51.

2. When I power up 1C20 board with the network cable unplugged and plug it in after I see "HTTP Server..." message on the LCD the board gets free IP (10.0.0.154) and I am able to talk with the webserver for a short while but then it stops working... Usually I get the front page text and some pictures, but most of the page is not displayed - webbrowser just times out after hanging on with "8 items remaining" in its status line. I was able to click on Resources link and download pdf with schematic then, but it took ages and it appears like the browser has constant problems downloading items from this webserver.

What could be the problem here? Any ideas? Thanks!

p.s. I am using Linksys 5 ports hub, model# NH105 and I am not experiencing any other network problems when I access my corporate LAN or internet using the same connection from the same pc-workstation (Dell P4, Windows XP SP1).