Nortel 5510 not routing with to default routes

I have a Nortel 5510 switch that is incorrectly routing information, this is the problem:

Until recently I have only had two routes from the Nortel, however after adding a new port to Vlan 2 traffic for the 10.0.0.0 subnet stopped routing to the next hop. For example If I run a traceroute to 10.16.160.2 from either subnet traffic never leaves the switch onto the next hop, although I can make this work by adding the static route 10.16.0.0 255.255.0.0 to the switch.

I have tried destroying the second Vlan and recreating it but suspect that the problem relates to a setting in the switch can anybody help.

 
The Layout

192.168.16.0/24 GW 192.168.16.14 Vlan 1
10.16.162.0/23 GW 10.16.162.14 Vlan 2

Routes
10.0.0.0 255.0.0.0 192.168.16.3 Metric 9
0.0.0.0 0.0.0.0 192.168.16.12 Metric 10

Default Next Hop GW 192.168.16.12
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MISLtdAsked:
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MISLtdConnect With a Mentor Author Commented:
Sorry for the delay in responding, this was eventually returning both switches to factory defaults.
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Rick_O_ShayCommented:
I am a bit confused about what you are seeing here.

Can you include a diagram of what is at each of the addresses in use and the config from before changes are being made to give a better idea of what you have and what you are trying to do? Thanks.
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MISLtdAuthor Commented:
This was resolved in house.
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