at the gateway machine i have done a:

ip route 0.0.0.0/0 192.168.1.2

default-information originate

which does cause everything behind the machine to receive the default route within quagga but they(running quagga .99.5) and the gateway(running quagga .99.9) itself do not install the default route into the kernel. All other routes are installed but as you can see the default is not there:

Destination Gateway Genmask Flags MSS Window irtt Iface
192.168.6.0 11.1.0.8 255.255.255.252 UG 0 0 0 eth3.2
192.168.4.64 11.1.0.5 255.255.255.252 UG 0 0 0 eth3.2
192.168.4.68 192.168.4.49 255.255.255.252 UG 0 0 0 eth1
192.168.4.60 11.1.0.5 255.255.255.252 UG 0 0 0 eth3.2
172.16.0.8 192.168.4.49 255.255.255.252 UG 0 0 0 eth1
192.168.4.48 0.0.0.0 255.255.255.248 U 0 0 0 eth1
172.17.8.0 192.168.4.49 255.255.255.248 UG 0 0 0 eth1
192.168.4.32 0.0.0.0 255.255.255.240 U 0 0 0 eth2
192.168.4.0 0.0.0.0 255.255.255.224 U 0 0 0 eth0
69.156.3.0 11.1.0.8 255.255.255.224 UG 0 0 0 eth3.2
192.168.3.0 192.168.4.1 255.255.255.0 UG 0 0 0 eth0
11.1.8.0 0.0.0.0 255.255.254.0 U 0 0 0 eth3.6
11.1.6.0 0.0.0.0 255.255.254.0 U 0 0 0 eth3.5
11.1.4.0 0.0.0.0 255.255.254.0 U 0 0 0 eth3.4
11.1.2.0 0.0.0.0 255.255.254.0 U 0 0 0 eth3.3
11.1.0.0 0.0.0.0 255.255.254.0 U 0 0 0 eth3.2
Arm1tage:~#

but the default route is within the quagga- via vtysh:

Arm1tage.hiigara.hm# show ip route
Codes: K - kernel route, C - connected, S - static, R - RIP, O - OSPF,
I - ISIS, B - BGP, > - selected route, * - FIB route

O 0.0.0.0/0 [110/10] via 192.168.4.1, eth0, 04:14:03
K>* 0.0.0.0/0 via 192.168.4.1, eth0
O 11.1.0.0/23 [110/10] is directly connected, eth3.2, 22:06:46
C>* 11.1.0.0/23 is directly connected, eth3.2
O 11.1.2.0/23 [110/10] is directly connected, eth3.3, 22:07:33
C>* 11.1.2.0/23 is directly connected, eth3.3
O 11.1.4.0/23 [110/10] is directly connected, eth3.4, 22:07:28
C>* 11.1.4.0/23 is directly connected, eth3.4
O 11.1.6.0/23 [110/10] is directly connected, eth3.5, 22:07:28
C>* 11.1.6.0/23 is directly connected, eth3.5
O 11.1.8.0/23 [110/10] is directly connected, eth3.6, 22:07:28
C>* 11.1.8.0/23 is directly connected, eth3.6
O>* 69.156.3.0/27 [110/84] via 11.1.0.8, eth3.2, 22:06:46
C>* 120.0.0.1/32 is directly connected, lo
C>* 127.0.0.0/8 is directly connected, lo
O>* 172.16.0.8/30 [110/20] via 192.168.4.49, eth1, 04:14:04
O>* 172.17.8.0/29 [110/30] via 192.168.4.49, eth1, 04:14:04
O>* 192.168.3.0/24 [110/20] via 192.168.4.1, eth0, 04:14:04
O 192.168.4.0/27 [110/10] is directly connected, eth0, 04:14:04
C>* 192.168.4.0/27 is directly connected, eth0
O 192.168.4.32/28 [110/10] is directly connected, eth2, 04:14:04
C>* 192.168.4.32/28 is directly connected, eth2
O 192.168.4.48/29 [110/10] is directly connected, eth1, 04:14:04
C>* 192.168.4.48/29 is directly connected, eth1
O>* 192.168.4.60/30 [110/20] via 11.1.0.5, eth3.2, 04:14:04
* via 192.168.4.33, eth2, 04:14:04
O>* 192.168.4.64/30 [110/20] via 11.1.0.5, eth3.2, 04:14:04
* via 192.168.4.33, eth2, 04:14:04
* via 192.168.4.49, eth1, 04:14:04
O>* 192.168.4.68/30 [110/20] via 192.168.4.49, eth1, 04:14:04
O>* 192.168.6.0/30 [110/74] via 11.1.0.8, eth3.2, 22:06:46
Arm1tage.hiigara.hm#
The gateway itself runs Kubuntu 7.10 while everything else is Debian 4.0r3
would you all have any ideas?

An edit:
This is NOT a business network, this is a network I have set up at home. some of it is cisco the rest is all host-based. I am using this network to help me in getting my CCNA. yes, I suppose it is overly, insanely overdone, but I want to really, REALLY learn networking, plus I find that I enjoy this research. The other benefit is getting the equipment from ebay in the entirety instead of going host-based would be fairly expensive, this way it is much more fun. Besides there's more than just Cisco equipment out there. The network consists of 6 host-based, 4(or 5?) cisco/linksys routers and 2 cisco switches, oh and a small trendnet and linksys switch too. It also has some servers hooked up to it for DNS, DHCP, smb, etc... This is just some clarification to let yall know WHY I have such a huge network. If you all want I will attempt (somehow?????) to post the configs and layouts if you all are curious, mind you I have a long way to go on learning how all the protocols work, just doing my best. Let me know if you all want to see them.

via NAT via shorewall my gateway works and everything behind it gets the default route and can reach the internet just fine. Only thing is it is not a static route controlled by Quagga. It is a static KERNEL route.

The implementation is thus:
cat /etc/network/interfaces
-output omitted-
# The internet interface #
iface eth3 inet static
address 192.168.1.50
netmask 255.255.255.0
gateway 192.168.1.2

cat /etc/shorewall/masq
#INTERFACE SOURCE ADDRESS PROTO PORT(S) IPSEC MARK
eth3 eth0
eth3 eth2

in quagga:
show run (partial)
router ospf
ospf router-id 120.0.0.5
passive-interface eth1
passive-interface eth3
network 192.168.3.0/24 area 0.0.0.0
network 192.168.4.0/27 area 0.0.0.0
default-information originate
!
ip route 0.0.0.0/0 192.168.1.2
!
ip forwarding

show ip route
Codes: K - kernel route, C - connected, S - static, R - RIP, O - OSPF,
I - ISIS, B - BGP, > - selected route, * - FIB route

S 0.0.0.0/0 [1/0] via 192.168.1.2, eth3
K>* 0.0.0.0/0 via 192.168.1.2, eth3

if I try to do without the gateway entry in the interfaces file and the entries in the masq file the internet becomes unreacheable despite the fact that the commands given in quagga have been given. Any ideas?

You're probably much better off asking your question on a Quagga mailing list or forum. This forum is mostly home enthusiasts, and most of those don't even know what Quagga is, let alone have experience running it.

Thank you kindly, I will do that! I think, though that I will have fun here as a home enthusiast I truly enjoy working with Linux, and bringing back supposedly dead/ ancient hardware back to life. Most of what I use to run quagga and everything else is six years + . Thx.