In this case, Linux 2.2.x will do the right thing. It WILL do proxy
arp for the whole network it's just that you don't have to configure it.
If a computer on the left tries to reach the default gateway using
ARP, the Linux machine will realize "hey, someone is ARPing for an
address fow which I am the/a gateway. Let's respond".
Cisco routers exhibit the same behaviour by default.
Now it might be that this doesn't work - in that case you have found a bug.
Mike.
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