I am using CiscoWorks Campus Manager and could never got Path Analysis properly to work. When doing a trace to a device, where we have the device with its loopback in DNS, it couldn't resolve the device (although it does have it in Topology Services as reachable and knows what device type it is). However, when we do the trace from the device it can resolve it nicely (that means it knows its a 2620 and it can look past the device). Now i have changed DNS to use the Ethernet interfaces and it works fine. But this is not quite what I want. All our Loopback interfaces are configured with a 32 bit mask. Does that make a difference?
I'm just wondering if somebody else has/had the same problem and how you have resolved it.