Ethernet Shield[ENC28J60 based] strange behaviour

Hi,ive got this breakout board,and have connected it directly to the arduino,and tied their grounds together.

I burnt the ping sketch on,and the LEDs blink as they should.I am running ubuntu,under which,when i reset the arduino,it does give a "Network Connection Established" pop up,but in a few counted seconds,also disconnects.

All Hardware connections are proper.

Ive set the PC to use a static ip,of the same subnet as the arduino.

I have tried it with both kinds of LAN cables.....and am not using any level conversion between the chip & the 'duino.

Whats going wrong?..has any1 come across this behaviour?