OK. Here it is - PtP patch from Andrew J. Schorr. No problems with ospfd,
ripd might need some more testing though.
diff --git a/zebra/ChangeLog b/zebra/ChangeLog
index 506e3ae..e377470 100644
--- a/zebra/ChangeLog
+++ b/zebra/ChangeLog
@@ -1,3 +1,15 @@
+2004-10-19 Andrew J. Schorr <aschorr@telemetry-investments.com>
+
+	* rt_netlink.c: (netlink_interface_addr) For PtP interfaces, ignore
+	  tb[IFA_ADDRESS] if it's the same as tb[IFA_LOCAL].
+	* interface.c: (ip_address_install) Use new ipv4_broadcast_addr
+	  function.
+	* connected.c: (connected_up_ipv4) Use CONNECTED_POINTOPOINT_HOST
+	  macro.
+	  (connected_down_ipv4) ditto.
+	  (connected_add_ipv4) Validate destination address, print warnings
+	  if it does not make sense.
+
 2004-10-19 Hasso Tepper <hasso at quagga.net>
 
 	* zserv.c: Fix regression introduced with zserv cleanup.
diff --git a/zebra/connected.c b/zebra/connected.c
index a043ef4..9a6fd66 100644
--- a/zebra/connected.c
+++ b/zebra/connected.c
@@ -70,7 +70,7 @@
   p.prefixlen = addr->prefixlen;
 
   /* Point-to-point check. */
-  if (if_is_pointopoint (ifp) && dest)
+  if (CONNECTED_POINTOPOINT_HOST(ifc))
     p.prefix = dest->prefix;
   else
     p.prefix = addr->prefix;
@@ -116,7 +116,49 @@
       p->family = AF_INET;
       p->prefix = *broad;
       ifc->destination = (struct prefix *) p;
+
+      /* validate the destination address */
+      if (ifp->flags & IFF_POINTOPOINT)
+        {
+	  if (IPV4_ADDR_SAME(addr,broad))
+	    zlog_warn("warning: PtP interface %s has same local and peer "
+		      "address %s, routing protocols may malfunction",
+		      ifp->name,inet_ntoa(*addr));
+	  else if ((prefixlen != IPV4_MAX_PREFIXLEN) &&
+	   	   (ipv4_network_addr(addr->s_addr,prefixlen) !=
+	   	    ipv4_network_addr(broad->s_addr,prefixlen)))
+	    {
+	      char buf[2][INET_ADDRSTRLEN];
+	      zlog_warn("warning: PtP interface %s network mismatch: local "
+	      		"%s/%d vs. peer %s, routing protocols may malfunction",
+	    		ifp->name,
+			inet_ntop (AF_INET, addr, buf[0], sizeof(buf[0])),
+			prefixlen,
+			inet_ntop (AF_INET, broad, buf[1], sizeof(buf[1])));
+	    }
+        }
+      else
+        {
+	  if (broad->s_addr != ipv4_broadcast_addr(addr->s_addr,prefixlen))
+	    {
+	      char buf[2][INET_ADDRSTRLEN];
+	      struct in_addr bcalc;
+	      bcalc.s_addr = ipv4_broadcast_addr(addr->s_addr,prefixlen);
+	      zlog_warn("warning: interface %s broadcast addr %s/%d != "
+	       		"calculated %s, routing protocols may malfunction",
+	    		ifp->name,
+			inet_ntop (AF_INET, broad, buf[0], sizeof(buf[0])),
+			prefixlen,
+			inet_ntop (AF_INET, &bcalc, buf[1], sizeof(buf[1])));
+	    }
+        }
+
     }
+  else
+    /* no broadcast or destination address was supplied */
+    if (prefixlen == IPV4_MAX_PREFIXLEN)
+      zlog_warn("warning: interface %s with addr %s/%d needs a peer address",
+		ifp->name,inet_ntoa(*addr),prefixlen);
 
   /* Label of this address. */
   if (label)
@@ -166,7 +208,7 @@
   p.prefixlen = addr->prefixlen;
 
   /* Point-to-point check. */
-  if (dest && if_is_pointopoint (ifp))
+  if (CONNECTED_POINTOPOINT_HOST(ifc))
     p.prefix = dest->prefix;
   else
     p.prefix = addr->prefix;
diff --git a/zebra/interface.c b/zebra/interface.c
index 5664f41..a1d0332 100644
--- a/zebra/interface.c
+++ b/zebra/interface.c
@@ -1107,7 +1107,6 @@
   struct prefix_ipv4 cp;
   struct connected *ifc;
   struct prefix_ipv4 *p;
-  struct in_addr mask;
   int ret;
 
   ret = str2prefix_ipv4 (addr_str, &cp);
@@ -1129,12 +1128,11 @@
       ifc->address = (struct prefix *) p;
 
       /* Broadcast. */
-      if (p->prefixlen <= 30)
+      if (p->prefixlen <= IPV4_MAX_PREFIXLEN-2)
 	{
 	  p = prefix_ipv4_new ();
 	  *p = cp;
-	  masklen2ip (p->prefixlen, &mask);
-	  p->prefix.s_addr |= ~mask.s_addr;
+	  p->prefix.s_addr = ipv4_broadcast_addr(p->prefix.s_addr,p->prefixlen);
 	  ifc->destination = (struct prefix *) p;
 	}
 
diff --git a/zebra/rt_netlink.c b/zebra/rt_netlink.c
index ee61cb2..50e83b7 100644
--- a/zebra/rt_netlink.c
+++ b/zebra/rt_netlink.c
@@ -596,7 +596,9 @@
       if (tb[IFA_LOCAL])
         {
           addr = RTA_DATA (tb[IFA_LOCAL]);
-          if (tb[IFA_ADDRESS])
+          if (tb[IFA_ADDRESS] &&
+	      memcmp(RTA_DATA(tb[IFA_ADDRESS]),RTA_DATA(tb[IFA_LOCAL]),4))
+	    /* if IFA_ADDRESS != IFA_LOCAL, then it's the peer address */
             broad = RTA_DATA (tb[IFA_ADDRESS]);
           else
             broad = NULL;