On Thu, 2011-05-19 at 22:47 +0200, W. Martin Borgert wrote:
> Is this a limitation of
> the Internet Protocol, Linux, network manager, or NM applet? (Or
> a limitation on my understanding of things?)

http://www.ietf.org/rfc/rfc3927.txt

Says about link-local IPv4 adresses:

   IPv4 Link-Local addresses are not suitable for communication with
   devices not directly connected to the same physical (or logical)
   link..

So it boils down to: 169.254.0.0/16 should not be routed - hence the name
"link local". While possibly technically feasible, you might find rather 
strange side effects.

What is it that you are trying to do?

Maybe an unnumbered Interface or a "private IP" subnet might just do it?

regards

Marc




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