In short 'yes it can'. (I guess there wouldn't a FAQ with the above title if that were not the case now would there...).

Case in point:
We had a customer working on a Terrain PDU interface. They had trouble getting their ASTi system and Host system to talk to each other (for terrain interface only, not for host control proper).

The system would not resolve addresses using ARP, and it also seemed to get interference between outgoing terrain packets and incoming host control packets. The customer could see buffer flickering, and the audio was breaking up.

It turns out that the customer was using raw mode for Host interface to the Model, and the necessary IP mode for the Terrain interface. The problem was quickly resolved when the Protocol field on Model Builder's ethernet status page was set to "IP+Raw".

The use of mixed modes is NOT recommended, and should be unnecessary in this day and age. We would recommend all interfaces be made using IP protocol.