On Mon, 2011-11-14 at 04:46 -0800, Yusuf Sengeza wrote:
> Proxy Arp is not enabled on interface, do I have to enable it? 

No.  Proxy-arp, when enabled, is something that CAN cause the behavior
you are seeing.  Don't turn it on unless you NEED it.
http://blog.butchevans.com/2010/06/when-and-why-proxy-arp/ will help
explain when it is needed.

> I have only one link that has multiple devices behind running Station 
> WDS and Ap WDS.  The rest of the links run on AP or STATION.

Are any of the devices with station only set up as bridges?  Another
possible reason for the IP conflict messages with DHCP is improper
bridging behind station devices that are "bridged".  

I am just taking a stab in the dark here at possible reasons for the
failure you are seeing.  I am assuming you are using Windows 7 and
seeing errors while attempting to get an IP from the DHCP server.  Other
than what I mention above for reasons, some less likely possibilities
are:

1. There may actually BE a conflict if there is a device on the network
with an IP in the range the DHCP server is handing out - check your pool
to fix this problem.  This can be caused by improper pools as well as
someone "stealing" access using your IP space manually.

2. A rouge DHCP server on the network can cause this as well.  To check
for this, turn on the DHCP server alerts for the appropriate interface.
http://wiki.mikrotik.com/wiki/Manual:IP/DHCP_Server#Alerts is the detail
on how to do that.

If it is NONE of those, then perhaps wireshark can tell you what is
happening.  

-- 
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