Are you running ACE in routed/Bridge mode? If you are running it in routed mode then make sure that server side vlan SVI is not configured on MSFC.
When you configure a source group in CSS, a CSS provides network address translation (NAT) of source IP addresses and port address translation (PAT) of source ports.
This can be achieved in ACE as well
class-map nat
match source-address any
!
policy-map multi-match nat
class nat
nat dynamic 1 vlan 100
!
interface vlan 20 <-- Client Vlan
ip address 10.20.10.1 255.255.255.0
service-policy input nat
!
interface vlan 100 <-- Server Vlan
ip address 10.10.10.100 255.255.255.0
nat-pool 1 10.10.10.18 netmask 255.255.255.255 pat
With the above config all traffic will be source nated to 10.10.10.18 before hitting the real server. Return traffic from servers will be destined to 10.10.10.18 and as a result will end up to ACE.
Hope it helps
Syed Iftekhar Ahmed