I have a 7206 with IOS 12.2(21a), that is passing broadcast. I can see this when I look at the ip cache flow table as shown below:
ROC-INET-3640#sh ip cache flow | include 169.254
Fa0/1 169.254.86.170 Fa0/0 169.254.255.255 11 008A 008A 1
Directed broadcasts are disabled by default on this router as shown and there is no IP helper address applied, nor are there any IP forward-protocol statements:
ROC-INET-3640#sh ip int f0/1
FastEthernet0/1 is up, line protocol is up
Internet address is 164.72.52.135/25
Broadcast address is 255.255.255.255
Address determined by non-volatile memory
MTU is 1500 bytes
Helper address is not set
Directed broadcast forwarding is disabled
ROC-INET-3640#sh ip int f0/0
FastEthernet0/0 is up, line protocol is up
Internet address is 164.72.100.129/25
Broadcast address is 255.255.255.255
Address determined by non-volatile memory
MTU is 1500 bytes
Helper address is not set
Directed broadcast forwarding is disabled
So why is this router passing the 169.254.255.255 broadcasts from F0/1 to F0/0?