Grandstream HT502 nightmare to setup (Tektalk)

So I have registered with TekSavvy for the TekTalk service. I have tried it for about 48 hours so far and I can pretty much say: It rocks! Perfect quality and very good so far. Important to note, I am also with Teksavvy for the Cable internet.

Now on to my problems with the ATA device (Grandstream HT502). The problem is in regards to the location to connect the device.

I have 3 options:

Option 1: HT502 outside of my LAN (before the router)
Cable ---> Thomson DCM475 ---> HT502 ---> Router ---> LAN 8port Switch (Computers, printers, etc..)

Pros:

• Simple config
• No need to configure the router for the ATA device
• All phones jacks in the house will be fed by the HT502 as it will be installed where the demarc point is located..

Cons:

• No QoS (when I am on the phone, if I even open a web browser and browse the web, I hear distortion on the line and choppiness
• My 30/10 connection is restricted to about 16/6... Ive done several tests, the ATA device severely throttles the bandwidth. Not acceptable.
• The internet connection depends on the HT502. If it crashes or otherwise cease to function normally, my whole network crashes..

Option 2: HT502 connected as a LAN device with its own static IP
Cable ---> Thomson DCM475 ---> Router ---> LAN 8port Switch (Computers, printers, etc..)

Pros:

• Ht502 doesnt impact internet connection bandwidth
• Device segregated with its own LAN IP so I can do QoS on the router to improve phone quality
• Network (and internet connection) doesnt depend on Ht502

COns:

• Will require setting up HT502 which I admit I had a hard time doing (the manual is CRYPTIC at best and Teksavvy's instructions are nonexistent)
• I will have only ONE phone working (because the Ht502 will be away from the demarc point)

The Thomson cable modem is in my house's electrical cabinet, because the cable coming from the outside is there. Because there were no LAN wires in this house, I fished a cable from the modem to my office and installed the router there. The router is a pfSense box with LOTS of addons and packages... As a rule of thumb with pfsense, leave it as the network's one and only "boss"... otherwise, something will stop working somewhere. I experienced this when I connected the Ht502 on my LAN, immediately all computers ceased to connect to the web.

So I am left with the following questions:

With the HT502 between the modem and the router, is it normal that the bandwidth be choked that much? The documentation for the HT502 mentions "RJ45 10/100Mbps" for the ports. If true, then I suspect the processor or other component of the HT502 is not keeping up with a 30/10 connection. What are you guys doing with this problem?

If you guys are not willing to have a choked internet connection, and are putting the ATA on the LAN side of the router, what are you doing with the only one phone problem??