diff -urN linux-2.4.22-rc2/net/ipv4/arp.c linux-2.4.22-rc2-arp3/net/ipv4/arp.c
--- linux-2.4.22-rc2/net/ipv4/arp.c	Wed Jul 30 09:19:06 2003
+++ linux-2.4.22-rc2-arp3/net/ipv4/arp.c	Wed Aug 20 23:11:53 2003
@@ -320,13 +320,21 @@
 	u32 saddr;
 	u8  *dst_ha = NULL;
 	struct net_device *dev = neigh->dev;
+	struct in_device *in_dev = in_dev_get(dev);
 	u32 target = *(u32*)neigh->primary_key;
 	int probes = atomic_read(&neigh->probes);
 
-	if (skb && inet_addr_type(skb->nh.iph->saddr) == RTN_LOCAL)
-		saddr = skb->nh.iph->saddr;
+	if (in_dev == NULL)
+		return;
+
+	if (skb && inet_addr_type(skb->nh.iph->saddr) == RTN_LOCAL &&
+	    (IN_DEV_SHARED_MEDIA(in_dev) ||
+	     (saddr = inet_select_addr(dev, target, RT_SCOPE_LINK)) == 0))
+			saddr = skb->nh.iph->saddr;
 	else
 		saddr = inet_select_addr(dev, target, RT_SCOPE_LINK);
+
+	in_dev_put(in_dev);
 
 	if ((probes -= neigh->parms->ucast_probes) < 0) {
 		if (!(neigh->nud_state&NUD_VALID))