Proxy ARP and DNAT

Hi All,

I am setting up a linux firewall box with the three network interfaces
as below:

eth0 - WAN
eth1 - DMZ
eth2 - LAN

with the usual meanings. The ISP has allocated a block of 32 IP Address
(27 bit subnet) some of which are going to be assigned to servers in
the DMZ. I plan to use Proxy ARP for setting up the DMZ. In addition I
want to use some of the Public IPs for some hosts in the LAN using 1-1
DNAT (and SNAT) so that they can be accessed from the internet. These
hosts are normal user systems and cannot be kept in the DMZ. To achieve
that I will be assigning multiple IP addresses to the WAN interface
(eth0) and then use DNAT (and SNAT) rules for the specific hosts inside
the LAN. I am just wondering if both Proxy ARP and DNAT can be used
together for the same block of IP addresses. Can it cause any conflict
?

Thanks,

Manish