When you first said that your bump exponent was 1, I thought it was a typo, cuz that's a lot of bump. (I see now tho that it works quite nicely)
So when I started it with 1, I figured it'd give me your problem. D'oh
I can't figure out what could cause that problem... it looked quite funky. You might wanna re-doublecheck all of your settings to make sure there isn't something screwy with them.
And that gradient thing you were talking about... yeah, I had noticed that during that first render. It kinda looks like it's just the bumpmap not being even lighting all the way up. (brighter/darker on the top/bottom)
I suppose you could try rebooting, (unless you're still in the middle of things, then don't worry about it) but I really don't quite see how that could cause that problem. I could be wrong, dunno exactly.