@ gt_addict, did you verify via command line the cgminer version?
Yes, I think an increased HW error rate results in less shares being submitted to the pool, therefore the pool will show you a reduced hash rate.
It could be just a difference in the two machines, but 0.2% error is pretty darn high. I overclocked my S3+ and its errors were less than 0.1% I'm pretty sure (or was it 0.01%?).
But:
root@AntminerS31:/usr/bin# cgminer -V
cgminer 4.9.2
So basically, do no trust the System info in the UI

Ah, well that must explain why he's done the kano updates but still thought he had the old cgminer version. I never checked the version in the gui, I always checked via ssh connection.