Has anyone ran into this senario before. Before anyone answers with "move your WAE off the user subnet", it already has been.
I have wccp 61 redirect in on the user subnet (gig0/0.83 of a dot1q trunk). The WAE is on gig0/1. Before I apply wccp62 to the serial link, I attempt to telnet from a user pc to the router (same subnet, clients default gateway), and the telnet fails. I get a "looping packet detected" on the router console. It shows the source of the packet as the router (wccp router id actually), and the destination ip of the WAE, but the packet came in gig0/1 (interface connected to wae). Obviously the WAE returned the packet to the router (with the original GRE headers, (router as source)). I thought WCCP would understand this as "don't redirect this traffic to me anymore", but the router, actually tries to route it back down gig0/1 and then sees it as a looping packet. I believe the WAE is returning the encapsulated packet to the router to indicate it doesn't want the flow, and the router is attempting to route the GRE packet, instead of realizing it should remove the GRE header and route the internal packet. Router is IOS 12.4(12) as recommended by my Cisco engineer. 2821 router.
For kicks, I continue the WCCP setup on the datatcenter side. As expected, it doesn't work. When I apply the WCCP to the datacenter router (only redirecting lab subnet), the entire lab subnet is unreachable via TCP (but icmp still works as expected).
The WCCP configuration isn't very complex, I can't believe its something I'm doing. I think its a code issue.