Still doesn't answer why CISCO says you apply default orig to the peer, not the peer group (which we've proven is backwards). It shouldn't be this way since you may want to use the peer group as a template for multiple customers, but they may not all want 0/0 sent to them. ALSO I didn't need to have 0/0 in my local routing table nor did I need to add the BGP command "Synchronization."
My understanding of the peer group feature is that it uses a single outbound policy, routes are checked to the peer group and all group members are then sent the update. This is very efficient and means you cannot have any exceptions to the per peer outbound route policy. If you have some wanting 0/0 and some not then you need to create a new peer group. You wouldnt need it in the routing table, thats why you used the default-originate command. And synchronization would be used to check whether to install the route if its in the igp or not, as again we're not using learned routes I guess it doesnt care about sync. (I'm also not sure how sync interacts with confed members, I assume it should for sync purposes treat them like regular ebgp peers and hence honor sync but i dont know!) Btw, check cisco-nsp@puck.nether.net if you're getting flamed for your OT posting :) Steve