The idea behind the arsenic theory is that arenate, which has 4 O atoms, could provide act as a suitable substrate during Oxygen Evolving Complex to provide the same protons and electron break down.
There is also a parallel chain of thought that arsenic is similar in its makeup to phosphorus, which is needed to create DNA and other genetic material, and so it could help cell division. However, I'm doubtful as arsenic is toxic in any real quantity and thus would be counterproductive to that.
If you are at all a bio geek, you really must check it out - it's a low-oxygen, alkali-rich simple ecosystem that supports a clearly visible food chain of about just 5-6 spices. The place is weird, creepy and totally amazing.
What was supposed to be a romantic road trip planned by my girlfriend for my birthday became an unexpected biology field trip.
[1] http://www.newscientist.com/article/dn14537-arseniceating-ba..., [2] http://en.wikipedia.org/wiki/Mono_Lake
However, with the problems arsenic causes blocking PDH enzyme, causing H2O2 in the cells and a huge list else like IIRC thiamine deficiency.
Then again, life exists in such a broad range of conditions that I find it hard to believe that life couldn't adapt to life with arsenic for one main reason. If it is using arsenic as a DNA base, it means it is sequestering the arsenic rather than leaving it in the cells to do damage.