just for other's reference... incase somebody else's encounter the same issue i have... 
1. Upgraded firmware to 20140201 
- Won't work on 55nm avalon i think... i reverted back to 20131123.. you can find the bin files here
http://downloads.qi-hardware.com/people/xiangfu/avalon/
2. Couldn't resolve URL, can only Ping IP
- use 8.8.8.8 as your DNS
3. a lot of rejected work
- i find setting frequency to 1200 keeps me at 0 rejects... will try to play a little more and see if i can find my sweet spot.
for the hardware errors... still couldn't understand why i am getting too much... and how to lower it down if not totally avoid having it...