update 1 and virtual NICs

Are virtual interfaces broken?
 
Fresh, updated install of RHEL3 w/update beta (x86)
System has 3 NICs - all use e1000 (dual on-board interfaces on IBM x345 and
one add-in Intel NIC)
 
I bring up a virtual NIC in one of 2 ways - either by creating a new
ifcfg-ethX:X file in /etc/sysconfig/network-scripts OR by using
redhat-config-network
 
I can bring this (and only this) virtual interface up ONCE.  It functions as
I expect.
 
After taking this interface down, if I try to:
- bring this interface back up
- create new virtual interfaces and bring them up
..I get "Some other host already uses address address XXX.XXX.XXX.XXX"
regardless of what value I use
 
....all virtual NICs I've mucked with have been on the 10.162.x.x or
10.10.x.x networks via eth0 or eth1 (wich have class C masks on my current
interfaces)
AND
at one point in time I saw a route for 169.254.0.0/16 via one interface
(eth2) that was never touched ???  That route has since expired.  The
network that is connected to eht2 currently has zero traffic.
 
The system is busy doing other things at this point so I cannot try
restarting networking en masse.  Am I missing something or is this broken??
 
Don


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