It's using longpoll now, and it shows the correct difficulty. There is no problem.
This
What's this?
cgminer version 3.1.0 - Started: [2013-05-05 17:15:55]
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(5s):239.3K (avg):239.1Kh/s | A:1 R:1 HW:0 U:0.1/m WU:489.1/m
ST: 3 SS: 0 NB: 9 LW: 218 GF: 0 RF: 0
Connected to 192.162.112.138 diff 1.16K with LP as user CQQZ392Grz4hGHrAJ4pw3rm
Block: 0797f562b26fac4f... Diff:1.37M Started: [17:22:37] Best share: 4.81K
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[P]ool management [G]PU management [S]ettings [D]isplay options [Q]uit
GPU 0: 77.0C 78% | 239.0K/240.8Kh/s | A:1 R:1 HW:0 U:0.14/m I:14
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[2013-05-05 17:22:37] LONGPOLL from pool 0 detected new block
[2013-05-05 17:22:38] LONGPOLL from pool 0 requested work restart
[2013-05-05 17:22:39] LONGPOLL from pool 0 requested work restart
[2013-05-05 17:22:54] LONGPOLL from pool 0 requested work restart
[2013-05-05 17:22:55] LONGPOLL from pool 0 requested work restart
[2013-05-05 17:22:58] LONGPOLL from pool 0 requested work restart
[2013-05-05 17:23:02] LONGPOLL from pool 0 requested work restart
I'm no longer getting shares.
Still not on your graphs this is my conf
setx GPU_MAX_ALLOC_PERCENT 100
setx GPU_USE_SYNC_OBJECTS 1
cgminer --scrypt ^
-o http://192.162.112.138:8109 ^
-O CQQZ392Grz4hGHrAJ4pw3rmxpuSfEq7oEW:x ^
--fix-protocol ^
-I 14 --thread-concurrency 15508 --worksize 256 --lookup-gap 2 -g 1 -s 5 --expiry 5