Dwalt - you hit the nail on the head.
I was not able to get the dev branch of the ESP Wifi gateway to build per the link you sent.
but I modified the senserbendermicro example to change the all of the "int" to "float" for the humidity readings and I am getting the correct readings now.
In the example the Temperature variables are all float types so the temp readings were working correctly.

+1 to you.

Hek - i have a 5v 2A wall wart powering the esp. it was reporting the high value right from the start due to the 2 byte int to 4 byte int conversion in the ESP.