How can you mend a proxy arp?

[Chris Kassopulo]

Greetings,

I'm setting up a slack 10 install.  My box has an ethernet card
connected to nothing and a modem that I use for net access.

PPP fires up and I am connected but addresses don't get resolved.

Log says:

Sep  7 17:59:04 creeklocks pppd[294]:
      Cannot determine ethernet address for proxy ARP

What is this thing called proxy arp, where does it get set up?

Thanks
Chris