I think the mix up is  some folks are talking about the segment in the LAN
IE  host to host  via an hub, switch  etc.
 The LAN segment is the issue

Whilst your quote is correct it's  describing a router NOT   a LAN loaded up
with hosts


Oz
http://www.mcseco-op.com/helpfull_links.htm
Everyone here is to learn and that too the correct thing so please unless
you are definite of something do not state it with so much authority. If my
word is not good enough then have a look at the URL :

http://www.cisco.com/univercd/cc/td/doc/cisintwk/itg_v1/tr1904.htm

It explicitly states that :

"Use the show interfaces ethernet command to check the rate of collisions.
The total number of collisions with respect to the total number of output
packets should be around 0.1 percent or less."
Ethernet0 is up, line protocol is up
  Hardware is Lance, address is 0010.7b81.6482 (bia 0010.7b81.6482)
  Description: connected to Cisco1548
  Internet address is 216.203.29.106/27
  MTU 1500 bytes, BW 10000 Kbit, DLY 1000 usec,
     reliablility 255/255, txload 1/255, rxload 1/255
  Encapsulation ARPA, loopback not set
  Keepalive set (10 sec)
  ARP type: ARPA, ARP Timeout 04:00:00
  Last input 00:00:00, output 00:00:00, output hang never
  Last clearing of "show interface" counters never
  Queueing strategy: fifo
  Output queue 0/40, 0 drops; input queue 1/75, 0 drops
  5 minute input rate 1000 bits/sec, 2 packets/sec
  5 minute output rate 1000 bits/sec, 2 packets/sec
     4281 packets input, 493175 bytes, 0 no buffer
     Received 3214 broadcasts, 0 runts, 0 giants, 0 throttles
     1 input errors, 0 CRC, 0 frame, 0 overrun, 1 ignored
     0 input packets with dribble condition detected
     15597 packets output, 1478611 bytes, 0 underruns
     0 output errors, 0 collisions, 3 interface resets
     0 babbles, 0 late collision, 1 deferred
     0 lost carrier, 0 no carrier
     0 output buffer failures, 0 output buffers swapped out

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