I got an email from the guy that built the merlin firmware and he told me to turn on the logging of dropped packets in the firewall settings, so i turned it on to log both dropped and accepted packets.
I then ran a traceroute to see what would show in the log and there were entries.
I had a look and i noticed that the destination IP was for my PS3

which is odd as i thought the IP should be for my PC. So i ran a second traceroute to double check and again the IP was for my PS3. also odd was all entires were accepted none dropped.
At this point i decided to turn my PS3 on as the destination IP was pointing to it and guess what? when i ran the traceroute i got a time on the last hop. Result!... Now i'm thinking progress...
Straight away, i created a new BQM and not surprisingly it's now working
So now the burning question....
Q: Why did i need to power on my PS3 for the BQM to start working?
The only thing i can think of is that my PS3 is in a DMZ, but i still don't see how that would make a difference