Cisco Switches :: Get InterVLan Routing To Work On DF300- 24 Port Switch

I am trying get inter vlan routing to work on a DF 300 - 24 port switch.  I have an existing company network on 192.168.111.0 and want to create a vlan on 192.168.1.1 that can talk to 192.168.111.0.  I have enabled layer 3 routing on the switch via console and also provided the ip routing command. I have the following VLAN's:
 
VLAN1 - Default 192.168.111.0
 VLAN2 - 192.168.1.0
 
I have enabled DNS and provided my two DNS servers 192.168.111.82 & 192.168.111.212.  I have set the VLAN1 interface to 192.168.111.217 and VLAN2 interface to 192.168.1.1.
 
Ports FE1 - FE15 are set to access ports and assigned to VLAN1 (untagged) 
Ports FE16 - FE24 are set to access ports and assigned to VLAN2 (untagged)
 
I have set a default route for the switch to 0.0.0.0 0.0.0.0 192.168.111.254 (Draytek 2600 router). I have connected a computer (A) to VLAN1 port FE3 and a computer (B) to VLAN2 port FE16.   I have set Computer A default gateway to 192.168.111.217 and its IP address to 192.168.111.94.    I have set Computer B default gateway to 192.168.1.1 and IP to 192.168.1.2.   
 
Computer A has access to Mdaemon, file server via network drives but no internet (cannot ping google) and can ping computer B and RDP onto computer B.
 
Computer B can ping computer A and RDP onto computer A but does not have access to the company network i.e MDaemon, file server etc.   It also cannot access the internet.
 
From the console I can ping [URL]and all ip addresses in the company network i.e. 192.168.111.82 (DNS server).  If I scan computer A wirh wireshark the internet starts working weird!
 
Configuration show below:
 
switch7c0a71#show run
vlan database
vlan 2
exit
voice vlan oui-table add 0001e3 Siemens_AG_phone________
voice vlan oui-table add 00036b Cisco_phone_____________
voice vlan oui-table add 00096e Avaya___________________

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