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When placing a network trace flag, the operation fails with this error (on the status bar):
"Action could not be completed because the underlying feature is corrupt."
While editing network features, this error occurs:
"The feature(s) could not be moved. Invalid network element id."
Geometric networks use multiple ArcSDE streams when retrieving the logical element of a network feature. The initialization of the second stream in ArcSDE is failing to set the correct database state for the versioned query being executed in the DBMS. Therefore, the logical element for the geometric feature is not detected and the geodatabase assumes the feature is corrupt.
This problem has been addressed in ArcSDE Version 8.1.2.