I know that nowadays using such an old Oracle version is not a great idea ( but perhaps I am not the only one still having to use some old databases ) so I understand if this post of mine will not be considered.
However, using a db link between an old 8i and, for instance, a 10g is something that Toad dislike and makes it go crazy.
This is true in commercial version as well.
If it were possible to fix it would be nice.
Anyway, best regards