submit doesn't work when embedding form on a page

This seems to work ok on one test server running windows2008
http://test.s4tp.org/form-test/
This one takes you to the thank you text when you hit submit and the submission shows up just fine in the entries.

But when I try to submit the form on another test server running windows2003 it doesn't seem to work, submit takes me back to the form again instead of the thank you text and the form entry doesn't show up in the entries.
http://rstest.s4tp.org/form-test/

There aren't that many differences in the two servers, same plugins etc. One server is windows2008 and the other is windows2003 so they handle permalinks different.

I did try changing settings to with and without ajax and with and with CSS but didn't help.

The windows2003 box uses the 404page solution for permalinks. I noticed in the forum somewhere that there was a redirect plugin (which I'm not using) that had a conflict with gravity forms. Wondering if this could be similar and if so if there is a work around. I tried some other ways of doing permalink/URL rewrite on that windows2003 box but the 404page solution was only way I could get permalinks to work on that box. Unfortunately that host won't upgrade that box to windows2008 (too old) so I'm stuck with it for awhile. We're doing a lot of this work for free for a non-profit group so I can't spend much money on it.

Any ideas would be appreciated.
thanks,
David

Thanks for the confirmation, I was suspecting it was a permalink thing. I may have a way to move to a different host and use windows2008. It does seem to like the way windows2008 handles permalinks.