Ok this problem has showed up again on a different box. The two boxes are totally 
different. one is a new amd 3500 the other is an old gateway pIII 933 MHZ. In both 
cases i verified the  install media. The Admin/install script see's the ethernet interface cards and lets me configure as a  server/gateway (lspic is also correct) 
but generates a bad network configuration script. with bond0 and eth0:4094.
instead of an internal(eth0)    and  external(eth1) configuration. 
It does not seem to matter how i configure the external interface -- so what 
causes it to even consider a bonded virtual interface?
This not the first time i have used Sme -- i have used e-smith from ver4 up to
the present 7.3 sme