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The proxy ARP feature in the PIX 500 Series Firewall with software version 6.x creates communication issues in the local LAN
This problem occurs because earlier versions of the PIX Firewall had a very aggressive proxy Address Resolution Protocol (ARP), so the device replied to every ARP with its own address. This situation causes communication issues in the local LAN segment.
The immediate effect of this problem is that no one in the local LAN segment can see each other.
For a workaround,
Disable the proxy ARP feature on the inside interface of the PIX.
To do this, issue the following command in configuration mode: