If you would follow guid on http://www.ehcp.net/helper/yardim/cats.php, you would see necessary steps for a proper hosting operation, mostly.. Networking concepts and All ports are listed in http://www.ehcp.net/helper/yardim/cat.php?cid=6

dynamic dns option of router is for non-static ips i think, in your case, your ip is static..
Go and check on links above. they are moderately good guide I think..

I suggest you to do all tests from outside your home network.. Because, your internal network has some other concerns, I will tell you later, your internal net needs some other configuration for your sites to work...
Do all type of tests (dns, website etc..) from outside of your home net... for ex, a net of your friend...

Check on your local server:
host ns1.piemaster.net localhost
this should give a reply. if not, there is something wrong with your server's dns/bind.

I checked your server/external-real ip from two different locations.
What is interesting is :
your server gave very different results:

# nmap 114.77.86.29

Starting Nmap 4.76 ( http://nmap.org ) at 2009-08-12 17:14 EEST
Note: Host seems down. If it is really up, but blocking our ping probes, try -PN
Nmap done: 1 IP address (0 hosts up) scanned in 3.21 seconds
# nmap 114.77.86.29 -P0

Starting Nmap 4.76 ( http://nmap.org ) at 2009-08-12 17:14 EEST
Interesting ports on 114.77.86.29.optusnet.com.au (114.77.86.29):
Not shown: 990 filtered ports
PORT STATE SERVICE
21/tcp open ftp
25/tcp open smtp
53/tcp open domain
80/tcp open http
110/tcp open pop3
113/tcp closed auth
119/tcp open nntp
143/tcp open imap
5050/tcp open mmcc
5190/tcp open aol

Nmap done: 1 IP address (1 host up) scanned in 12.88 seconds
# host piemaster.net 114.77.86.29
;; connection timed out; no servers could be reached
# host ns1.piemaster.net 114.77.86.29
;; connection timed out; no servers could be reached
#
#
#
#
# host ns1.piemaster.net 114.77.86.29
;; connection timed out; no servers could be reached
#
#
#
#
# nmap 114.77.86.29 -P0

Starting Nmap 4.76 ( http://nmap.org ) at 2009-08-12 17:23 EEST
Stats: 0:00:00 elapsed; 0 hosts completed (1 up), 1 undergoing SYN Stealth Scan
Interesting ports on 114.77.86.29.optusnet.com.au (114.77.86.29):
Not shown: 991 filtered ports
PORT STATE SERVICE
21/tcp open ftp
25/tcp open smtp
80/tcp open http
110/tcp open pop3
113/tcp closed auth
119/tcp open nntp
143/tcp open imap
5050/tcp open mmcc
5190/tcp open aol

Nmap done: 1 IP address (1 host up) scanned in 4.41 seconds
#
#
#
# nmap 114.77.86.29 -P0

Starting Nmap 4.76 ( http://nmap.org ) at 2009-08-12 17:24 EEST
Stats: 0:00:01 elapsed; 0 hosts completed (1 up), 1 undergoing SYN Stealth Scan
SYN Stealth Scan Timing: About 1.45% done; ETC: 17:25 (0:01:14 remaining)
Interesting ports on 114.77.86.29.optusnet.com.au (114.77.86.29):
Not shown: 998 filtered ports
PORT STATE SERVICE
25/tcp open smtp
113/tcp closed auth
Nmap done: 1 IP address (1 host up) scanned in 4.18 seconds
#
#

The meaning of those results are:
your server or network is not stable.. gives us very different results.. (or you did play with it in the time of my test).. This is really strange...
if you have a type of firewall, on your router or your server, I suggest first disabling it, that is, allow everything from outside,
then deny things one by one...

This is what I can suggest up to now..
see you.

Sorry for the late reply.

There is no way to make 8080 as the default port because port 80 is used as the HTTP Server port on many browsers. You have to figure out a way to forward port 80, or tell people to go to piemaster.net:8080. (i tried to go to http://piemaster.net:8080, but it doesnt work for me.

About .htaccess, wherever the default directory is (which contains your index.html file)