loop not useful in dynamips

Serial 1/0 on Router 1 is up/up to Serial 1/0 on Router 2 with 100% good ping to far end IP address. I put loopback set on Serial 1/0 of Router 1 and there is no change.

All router configurations appear to have been saved.

Still getting some system grind but seems to have improved.

Investigating further at this time.