As far as I know there's no network port activity light on the iMac's ethernet port, so i've only really got the Netwrok Prefs control panel to go by.
I don't have an ethernet hub yet, since I have no other ethernet Macs and Broadband etc is unheard of out here in Spittal Country. Up until now i've been networking older Macs using localtalk leads and phone sockets. I'll see if i can borrow a hub from someone and try it with the Dayna box to see if it works.
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