The Ethernet NB card driver performs three loopback tests before enabling
user services. If any one of these tests fail, the card won't allow you to
use the attached network. The initial two tests check the card's internal
communications paths. However, the third test performs a loopback test
using external parts of the network. If any part of the external network
fails to function properly (this includes 10baseT links), the test fails
and your port switches to the built-in LocalTalk port.
Concerning 10baseT hub termination, you definitely need to have hub
termination before the driver allows you to select user services.