Comment 4 for bug 84537

I have the same problem as well, running feisty latest updates,

init: init (upstart 0.3.8)
kernel: 2.6.18-ovz-028stab045.1 (OPENVZ kernel)

if I put the following line
"net.ipv4.conf.all.forwarding=1"
in the "/etc/sysctl.conf" file and run "sysctl -p", forwarding is enabled

regards, Eelko van Breda