Back tracking a problem with a routing machine not working, I found that the forwarding bit was not being set properly despite that I had ENABLE_FORWARDING_IPv4="yes" turned on in my /etc/conf.d/iptables. This box had three network adapaters and I was using eth1 and eth2, while leaving eth0 disabled. This seems to have been the cause of the ENABLE_FORWARDING not being applied correctly, though in exactly which script this occurs I am not sure. Once I moved my setup from eth1 and eth2, over to eth0 and eth1 then the forwarding settings again worked properly.
Oh, i forgot to mention that during the bootup process this error is also accompanied by this error... /sbin/rc: line 4: bin: command not found
please disregard last comment...posted to wrong bug.
ENABLE_FORWARDING_IPv4 does not belong in iptables to begin with. iptables is about filtering and mangling, not forwarding and routing. See bug 27087 and bug 14761 for more information. This feature belongs in the net scripts, not iptables. You may also want to reassign this bug, since Aliz has shown no intention of fixing bug 27087 either in the eight months or so it's been open. I am sending it back to the list now...
Iptables initscript doesn't include ipforwarding starting from 1.2.9-r1. Please see suggested temporary solution postinstall info.