Deferred transmissions and collisions are to be expected on a half duplex Ethernet connection; these counters should only show 0 (zero) when the connection is running in full duplex mode. I don't know whether your 10-megabit Ethernet interface(s) for the 7206 allows full duplex operation: I have seen documentation that the copper modules do (PA-4E and PA-8E) but the fiber module does not (PA-5EFL), so it depends what you have.
If you are connecting to a switch and have one of the copper modules, configure the router's port to operate in full duplex mode; and on the switch, configure its port to run at 10-megabit, full duplex (that is, no autonegotiation).
If you are connecting to a hub, multiport repeater or Ethernet concentrator, you have to leave the connection at half duplex to participate in the CSMA/CD collision detection process.
Here's a pair of useful links:
Troubleshooting Ethernet Collisions
http://www.cisco.com/en/US/tech/tk389/tk214/technologies_tech_note09186a008009446d.shtml
Charles Spurgeon's Ethernet Web Site
http://www.ethermanage.com/ethernet/ethernet.html
Hope this helps.
