Please don't take what I said as accusing you of lying. It obviously works - just not like it should.
What I said (or meant to) was via tcp/ip the configuration will not work if:
1 - The computers are on a different subnets
2 - The default gateway is on a different subnet than the computer
I think you are on to something with your router - like I asked above - it appears that you might have 2 addresses on your router (server).
You are correct that it is not idea from a data perspective because your switch or router is involved when it does not need to be.
I would recommend cleaning up the IP addresses and simplifying it if you can.