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I'm confusing you because I myself am confused.
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Aren't we all sometimes?
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When I type "pon" it connects to my DSL connection and a new interface ppp0 is created.
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Then there's some
pon script (about which I know nothing) that is run to connect your eth0 to the internet. Apparently it is happy with IPV6. So all well & good.
/etc/network/interfaces has no work to do for eth0 (because
pon has already done the work), but it is currently trying to get an address with dhcp, which it doesn't need, and cannot be provided anyway because your modem isn't running a dhcp server.
Your options:
1] Ignore the error messages - they are harmless
2] Try commenting out the references to eth0 in your
interfaces file (I think this will work for you)
Background: Your ISP is giving your modem an
internet IP address. You are connecting to your modem with ppp. There is some IP masquerading / forwarding going on that allows your
intranet LAN (192.168.1.*) to access the internet. It is working.
The last time I used
ppp was when I has a USB DSL modem. It was a complete PITA, and I got myself a proper ADSL ethernet modem / router / switch / firewall (search through my previous posts for details). It saved me a load of configuration troubles.
I like to know what is going on with my networking configuration, and I mistrust the GUI ("idiot-proof") tools. So I have everything set up manually, and it is stable and functions well.
Hope this helps