VM is causing dsl modem to issue public ip

[baboo]

I have a kvm with 1 vm configured. They have different mac addresses. When I bring up the vm the dsl modem/router issues a public ip even though the vm is configured with a static 192.168.1.150 ip.

Of course my provider is blaming the vm. Has anyone seen this? Could the vm be converting mac address incorrectly when handshake takes place?

Internally, I get an ip conflict when vm comes up with another computer on my lan. They have different mac addresses.

any insights?

thanks