Then you remove the switch and replace the connection between the two machines with a direct (cross over) cable, and the errors disappear.
Thus it would seem sensible to blame the swtich or initial cabling.
and we also ran a loopback test with no errors
If you are refering to the internal loop back test with the 127.0.0.1 IP address, then this isn't a good test of the hardware. It really just tests if the device driver is installed.
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