yes, you have to adjust your /etc/resolv.conf before trying to get the image!
Currently your box is downloading from itself:
Connecting to downloads.openwrt.org (192.168.1.1:80)
wget: can't connecto to remote host (192.168.1.1): Connection refused
Currently your box is downloading from itself:
Connecting to downloads.openwrt.org (192.168.1.1:80)
wget: can't connecto to remote host (192.168.1.1): Connection refused