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Watchguard x750e Configuration Issues

Hi,

We've inhireted a network which uses the IP range 137.121.82.0 /24, we're trying to configure a new x750e using this range as the Trusted network. On the External, we have a /29 subnet of IPs to use.

The current configuration is as follows :

Eth 1 Trusted Interface : 137.121.82.230 /24
Eth 0 External Interface : This is using the PPPOE client and obtaining details via DHCP.

The problem is that traffic is not being routed externally. When configured as follows :

Eth 1 Trusted Interface : 192.168.2.1 /24
Eth 0 External Interface as above, PPPOE with IP via DHCP, traffic is being routed fine.

What could be the issue here?
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Many thanks for this, this was exactly what solved the issue, you've been a great help.