Running Locally Hosted Gadgets

At present, the Google Wave server I'm working with is unable to run locally hosted Gadgets. I can view the xml file from the browser, but I am getting back a 502 error code when I try to load it with wave. When I go to load it, I get a broken gadget screen. In the Add Gadget window I can see the imageUrl, so I know it can get to the url location I am giving it.

Here is the relevant portion from the jsongadgets.json file.
Example:

{"name":"Local Diagram Editor", "desc":"Create cool diagrams (UML, BPMN, EPC, FMC, etc.) together with your friends in Google Wave!", "primaryCategory":"PRODUCTIVITY", "secondaryCategory":"OTHER", "gadgetUrl":"/static/gadgets/cloudfront/gadget/oryx_stable.xml", "author":"processWave.org<http://processWave.org>", "submittedBy":"Jeremy", "imageUrl":"/static/gadgets/cloudfront/gadget/static/splash.png"}

,

Below is the error I am getting back when I try to load the gadget into a wave.
{"gadgets":[

{"errors":["Unable to retrieve spec for /static/gadgets/cloudfront/gadget/oryx_stable.xml. HTTP error 502"],"moduleId":0,"url":"/static/gadgets/cloudfront/gadget/oryx_stable.xml"}

]}

I can physically look at the xml file with my browser with no issues.