WAAS and WCCP - looping packet detected

Question

Hi,
Has anyone ran into this senario before. Before anyone answers with "move your WAE off the user subnet", it already has been.
I have wccp 61 redirect in on the user subnet (gig0/0.83 of a dot1q trunk). The WAE is on gig0/1. Before I apply wccp62 to the serial link, I attempt to telnet from a user pc to the router (same subnet, clients default gateway), and the telnet fails. I get a "looping packet detected" on the router console. It shows the source of the packet as the router (wccp router id actually), and the destination ip of the WAE, but the packet came in gig0/1 (interface connected to wae). Obviously the WAE returned the packet to the router (with the original GRE headers, (router as source)). I thought WCCP would understand this as "don't redirect this traffic to me anymore", but the router, actually tries to route it back down gig0/1 and then sees it as a looping packet. I believe the WAE is returning the encapsulated packet to the router to indicate it doesn't want the flow, and the router is attempting to route the GRE packet, instead of realizing it should remove the GRE header and route the internal packet. Router is IOS 12.4(12) as recommended by my Cisco engineer. 2821 router.
For kicks, I continue the WCCP setup on the datatcenter side. As expected, it doesn't work. When I apply the WCCP to the datacenter router (only redirecting lab subnet), the entire lab subnet is unreachable via TCP (but icmp still works as expected).
The WCCP configuration isn't very complex, I can't believe its something I'm doing. I think its a code issue.
Any advise?

Answer 1

no "out" anywhere. The LAB router has a WAE list to only allow redirect to the lab WAE. I don't even need the 62 in on the WAN side, just applying 61 in on the LAN side breaks telnet to the router.
LOOPING PACKET DETECTION:
from router console
Feb 27 14:56:32.924: %IP-3-LOOPPAK: Looping packet detected and dropped -
src=132.242.11.18, dst=153.61.83.70, hl=20, tl=76, prot=47, sport=0, dport=0
in=GigabitEthernet0/1, nexthop=153.61.83.70, out=GigabitEthernet0/1
options=none -Process= "IP Input", ipl= 0, pid= 77 -Traceback= 0x410F6978 0x415CC960 0x415CDC60 0x415BBB38 0x415BCF18 0x415BD27C 0x415BD2FC 0x415BD4E8
Router configuration:
ip wccp 61 redirect-list REDIRECT-WAAS-SUBNETS-61 group-list remote-waas-box
interface Loopback0
ip address 132.242.11.18 255.255.255.255
h323-gateway voip bind srcaddr 132.242.11.18
interface GigabitEthernet0/0.83
description << data vlan 83 >>
encapsulation dot1Q 83
ip address 153.61.83.3 255.255.255.192
ip helper-address 192.127.250.22
ip helper-address 149.25.1.182
no ip proxy-arp
ip wccp 61 redirect in
standby 83 ip 153.61.83.1
standby 83 priority 200
standby 83 preempt
standby 83 track Serial0/1/0:0.99 100
interface GigabitEthernet0/1
description << WHQ LAB CE connection >>
ip address 153.61.83.65 255.255.255.192
load-interval 30
duplex full
speed 100
ip access-list standard remote-waas-box
permit 153.61.83.70
ip access-list extended REDIRECT-WAAS-SUBNETS-61
permit ip 153.61.83.0 0.0.0.63 any
WAE configuration:
device mode application-accelerator
primary-interface GigabitEthernet 1/0
interface GigabitEthernet 1/0
ip address 153.61.83.70 255.255.255.192
no autosense
bandwidth 100
full-duplex
exit
wccp router-list 1 153.61.83.65
wccp tcp-promiscuous router-list-num 1
wccp version 2
wccp slow-start enable