http://imageshack.us/photo/my-images/823/cs2j.png/bfgminer -o mining.bitcoin.cz -u shefflad.worker1 -p 1234 --http-port 8332
if i type the ip address into browser so 192.168.147.130:8332 it acknowledges something wants to connect to bfg miner but when blades connected it just keeps requesting update for work
You should have atleast the blade(now:192.168.2.109) and the proxy(now:192.168.147.130) in the same subnet, like 192.168.2.100 for the machine running the proxy (Server Address) and 192.168.2.101 for the blade.
For some reason, BFGminer 3.2.1 (too lazy to update

) slows down my V2 blades to 75%-80% max, approx 100-110 shares per minute! That's why i run the stratum proxy on my desktop (IP:192.168.1.200)
Take a look at my configuration:
http://i.imgur.com/DrwDtez.jpgThe IP 192.168.1.202 is assigned to the blade (i run 3 of them: 201,202, 203)
Gateway is the Device that routes to the internet, all blades connect via a hub to the network card with the IP 192.168.1.200. You should set this as a static IP in the network properties of your Windows!
I've set this IP as the primary DNS, too! Secondary DNS belongs to a google DNS server
Server addresses: the machine the proxy is running, 192.168.1.200 too!
You might extend the pass up to 4 chars since there were problems with passwords shorter than 3 chars in the past. Since it isn't really needed, nothing to worry about "1234" or "abcd"
My desktop connects to the Router/Modem/Internet over a 2nd network interface (WLAN)
If you have further questions, i'd do a quick drawing of my setup and used IPs later!