Hardware address xx:xx... trying to be our address...

Do you realize you just told all of us how to reach your machine?
If you are not comfortable having done that, you may want to ask customer service to delete this message.
(whether you grade jhance first, or re-post to award points)

There is nothing in this question that is a security problem.  If this machine is exposed to the internet then whether it's IP address is known or not has nothing to do with it's security or vulnerability.  For those in the "business" of hacking into systems (and even some legitimate users), there are any number of "scanner" utilities out there that search out and report IP addresses of machines.

The machine was always accessible, but we may not have known that ebeyer was associated with it before.
Since I now see that ebeyer has posted a name and email address on another question, perhaps ebeyer is comfortable revealing this.
In which case, fine, no harm done.
I just wanted to be sure this was not inadvertent.

OK, I understand your point.

Yes I know I exposed the address to you but that is fine with me since it could be found out without telling you about it. Anyway back to the question. The hardware address that it reports as using this IP is in fact the hardware address to the machine that this warning is being reported. I will look into the DHCP part of this still.

Let me ask you something else.  In Sun's, the hardware address can be changed by using the setup boot monitor.  Is it possible that you or someone else changed the hardware (MAC) address of this machine or the other one?

To the best of my knowledge that has not been touched, on the setup it found this hardware address. I am a newbie to using a Sun, usually only deal with Linux but I have a question, in /etc/init.d/inetsvc towards the bottom of that file it sets up multicast, is this really necessary on a standalone workstation, it seems to me that something in that file is causing the warning. It also does a lot with dhcp in that file so I am lost now of what to do.

Does this machine have more than one network interface?

Nope, when I do /sbin/ifconfig -a I only get lo0 and le0

Are you possibly running scripts that try to set the IP address more than once?

I have not changed or added to any of the scripts that the server installed with. Does this warning actually cause any problems network wise?

Thanks jhance for the feedback, I am going to go back through and reconfigure the system and see if that helps, its one of those boot scripts that is doing something wrong to it.