I guess I don't understand what you think is getting lost.I can ping the VLAN "gateway" (192.168.5.1) from the edge router. I can ping a machine on the VLAN itself (192.168.5.2). On the machine I can ping up to the internet gateway (x.x.x.1). Traceroute dies off at x.x.x.1 as well. Something still getting lost between the edge router and the switch.
So a machine at 192.168.5.2 can ping the internet gateway... so your internal routing is working.
What are you doing a traceroute from and to? From 192.168.5.2 to google for example, if it dies at the edge router, then your nat isn't working yet... is that what you mean?