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To answer multiple posts at once:

It is in its own vlan. In fact, it is the only thing on the switch at the moment.

It is an ACE-to-ACE connection using the ACE ports.

I have the same problem: the network-to-network connection never failes but the ACE always does over my Cisco switches. It sometimes says “mixrack connection lost” and other times it says “mixrack connection failed”. As an interesting test, I borrowed a HP Procurve switch from work and that functions just fine for ACE. I am now scratching my head.