Hi.
We have a linksys here running open wrt - same exact results. A single target works OK, but multiple targets start to drop packets at hop 1. We just ignore hop 1.
This happens because the router / firmware is either having issues keeping track of TTL=0 replies on that hop, or possibly because a deliberate choice by router's software. As open source software, it may be interesting to look at the handling code and see what's up. We've not done that yet, though.
For now, you pretty much just have to ignore hop 1's packet loss and look at hop 2.
Best wishes,
Pete