yes the host gateway is set to 10.0.0.200

In fact I do not know if it helps but from the router which has the ethernet 10.0.0.200 directly connected and not learned through rip I can ping the host even when connected with telnet on serial interface with 192.168.2.x

Are you sure RIP is working?

Are there routes to the 10.0.0.0 network in the remote side router?

Is it RIP version 1?

Could it be a discontiguous netwok issue?

remote side router

R 10.0.0.0/8 [120/1] via 192.168.2.250, 00:00:06, Serial0

C 192.168.2.0/24 is directly connected, Serial0

local router

C 10.0.0.0/8 is directly connected, Ethernet0

C 192.168.2.0/24 is directly connected, Serial0

using rip v1, host 10.0.0.4 connected with local router ethernet port and ping ok from local router.

from remote router can ping 10.0.0.200 ethernet interface of local router but cannot ping host

It sounds like you have FW enabled in the host that only allows ICMP from devices within the same subnet.

Even telneting to the local router on its serial interface, will produce an ICMP packet sourcing from the ethernet interface.

You can alter this behavior by using this command.

ping 10.0.0.4 source [serial ip]

on the local router and see if the host respond to the ICMP.

If this is WindowsXP, most often Windows FW is enabled. Check for that ...

Thank You I think this could be the reason. Unfortunately that command gave me an error when I tried from local router;

r2#ping 10.0.0.4 source 192.168.2.250

^

% Invalid input detected at '^' marker.

Tried to disable Windows firewall however it did not fix the problem.

Perhaps you have an old IOS.

Try with extended ping... Example,

ping [enter]

and follow the prompts, when you get to the source address, enter it there.

When using the extended ping command (ping [enter]), in order to specify a source address or interface you need to hit y when asked about extended commands.

hth