I know very little about routing, but it seems to me that what I am trying to do should be legal.

I have 2 interfaces, one WAN (external), one LAN (internal). On the LAN side, one of the machines is running a Cisco router in emulation (dynamips) which sits between the LAN and a lab network.

Ex: LAN 192.168.1.0/24, LAB 10.8.5.0/26, Router LAN IP 192.168.1.29

On a windows machine on the LAN I can access the LAB subnet by creating a static route: route add 10.8.5.0 mask 255.255.255.192 192.168.1.29, but I would much rather have ASG (which is my default GW for the LAN) to the routing to the LAB router.

I configure a static route in ASG:
Route Type: Gateway Route
Network: 10.8.5.0/26
Gateway: 192.168.1.29 (bound to internal)

Now when I try tracert from LAN to LAB, hop 1 is the ASG (192.168.1.1) but hop 2 and beyond go out the WAN rather than going to 192.168.1.29.