I notice the LED's in the karma dock flashing

Those are ethernet traffic LEDs. They are just like the traffic indicator lights on your hub or on the NIC card in your PC. All it means is that there's traffic on the ethernet, it doesn't mean those devices are specifically communicating with each other.

It's likely that you're using a hub instead of a switch. The difference between a hub and a switch is that the traffic on a hub is heard by everything plugged into the hub. The traffic on a switch is routed only to the correct port (except for broadcast packets which go to everyone).