Thanks for the reply.
The SRX does indeed support Proxy ARP, but this isn't a Proxy ARP situation (from the prespective of the SRX). Proxy ARP is when a router / firewall needs to respond to ARP requests for subnets that are behiond it effectivyly saying "send the packets to me". This is not the issue here.
The problem is that the ARP request being RECEIVED by the SRX is being ignored. I am wondering if it is being ignored because the "tell" part of the packet is for a different subnet.