slow Internet connection and a strange IP

I just installed a new router and I am having some issues I hope someone can help me with. I am getting very slow Internet connections.

I use PPPoE, so the provider supplies the WAN side info for the router. I have a static IP.

In the routers status information it shows the WAN info so as such:
Connection: connected
Mode: PPPoE
IP Address: My Static
Subnet Mask: 255.255.255.255 (correct)
Gateway: 192.0.2.100
DNS #1: 192.168.1.254 (router, correct)
DNS #2: 192.168.1.1 (DNS sever, correct)

The Gateway is obviously wrong and I believe this is what is giving me a slow connection.

The router manufacture tells me that the service provider supplies all PPPoE information and the it is not configurable by the end user under PPPoE. They say the service provider is supplying the gateway info.

The service provider says there is no possible way for them to provide a private address for the gateway on the WAN side.

I can tracert to my static IP in one hop.
I can tracert to my router (192.168.1.254) in one hop.
Tracert to 192.0.2.100 takes 2 hops, one through the router (192.168.1.254) and the second hop to 192.0.2.100.

It would seem to me that this weird address is past my router. I cant figure out what this might be (192.0.2.100)

We are using DSL. The router/modem is connected directly to the dmark. the router is connected to a switch and to a server.

Can anyone shed some insight.

Thanks

Can