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Hi,Once the router gave out IP to a host, the entry in the arp table will remain for the life of the lease.In other words the ARP table will not age-out.HTH
Check your routing table,& check the routing config on both routers, and try to dial(if you can't telnet) into 172.16.1.2. this where the pkt drops and u get timed out. Check the config, log, on this router.