Found the issue... Took a bit of asking around but turned out to be much more simple than I had expected. The game server won't accept an io ip larger than 15 characters. (Including (Dot) .'s) In IME's case (rappelzserver.dyndns.info) it is 25 characters which is far too long. I went to no-ip.com and registered a 4 digit name... Register a 15 digit or less dns domain name, change io ip in gs opt to your dns, change S io.port:6686 to S io.port:4514, change the ip in your bat file or launcher, add dns to hosts file, and be sure the appropriate ports have been forwarded. Worked perfectly for me. This drove me nuts so I hope it helps.
Cheers.
-Major thanks to NCarbon and the entire Arcadia community.