That's how I would expect things to be working based on your configuration. The hosts file on your linux box is only going to affect dns lookups made from on the linux box, not from other machines on the network. It's quite common for little routers doing NAT not to be able to forward packets from inside the network to NAT'ed external ip's and back again which would be what is happening if you try and access
http://physworx.com/ from another machine on your internal LAN without editing it's host file.
If you want to be able to access your server as http://physworx.com:8000/ from other machines on your home LAN you will need to either edit the hosts file (or equivalent) on those machines ro set up a dns server internally that is authoritative for the physworx.com domain internally and forwards all other queries up to your ISP. It would point to 192.168.2.7 as the address for physworx.com etc. You'd need to set your other home machines to point to it as their DNS server (or tell dhcp to give out its address as the dns server).
I'd suggest if you did this you may want to get aolserver running on port 80 internally also so you access it at http://physworx.com/ inside or outside.
