Well i read the aritcles - very intersting.I checked the arp packets like u said, strangely though i realised that none of them this time had a destination address
all they were doing was my router was querying the mac address of 10.0.0.3 ( which is my ethernet card), and 10.0.0.3 replying with the mac address.
I also noticed that watever address i put for the broadcast address on knoppix 4.02 worked, with no problems. I also did arp -n in shell and noticed that the only address i have in the arp cache is my router 10.0.0.1.I logged into my router and looked at the settings, i found this. I am not sure if it will be useful.

WAN Statistic:
IP Address Subnet Mask MAC Address
172.26.12.163 255.255.0.0

LAN Statistic:
Number of computers connected to the DHCP server: 1
IP Address MAC Address
1 10.0.0.3


LAN & DHCP Configuration

LAN Setting (Router Configuration)

Enter the LAN IP address: 10.0.0.1
Enter the subnet mask: 255.255.255.0

DHCP Server Setting

Enable DHCP Server?: Yes
DHCP address pool selection: System Allocated

DHCP address pool (For User Defined only)

Start Address: 10.0.0.4

End Address: 10.0.0.15

Lease Time: 1 days 0 hours 0 minutes 0 seconds

Anyways man. After this post i'll just continue reading and try to figure out the problem.When i get the solution i'll post i, and maybe with the new knowledge i'll be able to help other users in this forum.Wish me luck