Cisco Interface0/1(LAN) is not sending traffic out Interface0/0(WAN)

Got a question that's a bit rough. So currently we have this setup ( https://i.imgur.com/wedBAO2.jpg ) where we are not not using the OVS (openvswitch) connection anymore aka the triangle. We made an actual interface on the server to bypass this, but that's not the issue, so Palo is a VM and Cisco is a physical 2811 router, where Palo is connected to Interface0/1 and can successfully ping it, but cannot get out, whereas on the Cisco router itself it can ping out to 8.8.8.8 on Interface0/0

Our Cisco config is:

Current configuration : 959 bytes

! version 12.4

service config

service timestamps debug datetime msec

service timestamps log datetime msec

no service password-encryption

!

hostname R1

!

boot-start-marker

boot-end-marker

!

enable secret 5 $1$Srd4$FruvokoxY9bb7jJiYMoHJ/ (it's just password, literally)

!

no aaa new-model

!

resource policy

!

ip subnet-zero

!

!

ip cef

!

!

!

!

!

!

interface FastEthernet0/0

ip address 10.254.0.41 255.255.255.0

duplex auto

speed auto

!

interface FastEthernet0/1

ip address 172.16.2.1 255.255.255.0

duplex auto

speed auto

!

interface Serial0/0/0

no ip address

shutdown

no fair-queue

clock rate 2000000

!

interface Serial0/1/0

no ip address

shutdown

clock rate 2000000

!

router rip

version 2

network 10.0.0.0

network 172.16.0.0

no auto-summary

!

ip default-gateway 10.254.0.1

ip classless

ip route 0.0.0.0 0.0.0.0 10.254.0.1

!

ip http server

!

!

control-plane

!

banner motd ^C How are you today ^C

!

line con 0

line aux 0

line vty 0 4

login

!

scheduler allocate 20000 1000

!

end

I can ping the LAN IP from Palo, and the WAN IP from Palo, I cannot however hit the router on the other side of the Cisco Router.

Any advise would help.

Thanks.