Which distro are you using?
I have Gentoo here, and it seems you need to start the program once for each interface. ie:
Code:
IFACES="eth0 eth1"
for IFACE in ${IFACES}
do
DATAFILE=/var/lib/arpwatch/${IFACE}.dat
arpwatch -i $IFACE -f /var/lib/arpwatch/$IFACE.dat
done