I am experiencing an issue with Proxy ARP in my network, but only for one server.
Our DG on our netowrk is an ASA 8.0(3) that has Proxy ARP enabled due to allocating a portion of the same internal range to remote hosts.
I have one server on the network that is uncontactable, again on the same range, due to the ASA replying to the ARP request.
With the ARP on my machine flushed, pinging the server gets a reply on the first ping, then times out. Looking at an ethertrace from my machine, the server replies first, hence the successful response and then the ASA replies a couple of ms later causing the ping to fail and the server to become uncontactable.
At the moment the only way I can get round this is to put a static ARP entry on my machine and any other that wants to hit this server.
I have put a static entry in the ASA and not selected the PROXY ARP check box, but this makes no difference.
Interestingly, if I leave a constant ping going the server eventually responds, but periodically (randomly) falls off of the network for a random amount of time.