Crazy PC network card brings down entire LAN

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Got a really strange problem in our office. From time to time the whole network would become unresponsive and after a few minutes of this it becomes impossible to communicate over the LAN.

Example. When you try and ping another workstation or server you will get some degree of packet loss and / or unknown host and / or destination unreachable errors.

This has gone on for a few weeks, but never lasted very long and didn't cause too much disruption and we we're too busy to track it down until today when the whole LAN stopped working.

We had a real pain switching off all the servers and unplugging everything from the LAN this afternoon to try and locate the problem. We left the DSL modem, Firewall and DHCP server running and with a laptop wired into the LAN we then re attached each piece of equipment until we lost the ability to communicate over the LAN e.g. It became impossible to access the Internet or ping other network devices.

The source of the problem was a Dell workstation (which was turned off at the time). We disconnected the cable from PC to the LAN and connectivity was restored almost instantly.

Strange things is once the LAN was back to normal and up and running we re connected the PC (still switched off) and within minutes the LAN was fubar.

We then switched the PC on and the LAN connectivity returned!!!

All the drivers on the PC are standard, its just an office workstation nothing fancy, its running Vista Ultimate SP1

So, the LAN doesn’t work with the PC off, but does work when its on!! What would cause this behavior and what could bring it on now? We’ve changed the network card as a precaution but we have many workstations like this one and don’t want to buy each of them network cards.
 
a wake-on-lan setting in the bios possibly, in combination with a borked rj45 socket on the card, have you tried it on another machine?
 
Just got in this morning and apparently a colleague has informed me this has happened with another workstation (identical make - Dell Dimension 9200) In that case they too changed the network card and the problem went away. The network card on the workstations is the Intel 82566DC onboard.

I guess we’ll have to update the network card drivers / firmware on the other PC and want and see if it happens again.
To answer some of the questions so far we did change the cable and switch port / wall patch position on the faulty machine but it made no difference so once we put the new card in it's running fine on the old cables and patch ports. Also the PC has wake on LAN disabled in the BIOS
I’m trying to find on Google how a faulty network card can destroy a LAN, help is still much appreciated.
 
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