Packet flow and processing involves knowing the source and destination IP addresses, source and destination MAC addresses. If the destination host is in the same network, the packet is delivered directly, otherwise it goes to the default gateway first. ARP is used to resolve IP to MAC addresses. When pinging from Host A to Host B, the packet first goes from Host A to the default gateway, then the gateway sends it to the second gateway, which sends it to Host B, with only the MAC addresses changing at each hop while the IP addresses remain the same.