By "transparent firewall" do you mean that the WAN and LAN ports are bridged together? And what do you want this firewall to actually do?
I have bridge filtering working between LAN and Wifi:
# ipkg install ebtables
# insmod ebtables
# insmod ebtable_filter
# ebtables -L
Bridge table: filter
Bridge chain: INPUT, entries: 0, policy: ACCEPT
Bridge chain: FORWARD, entries: 0, policy: ACCEPT
Bridge chain: OUTPUT, entries: 0, policy: ACCEPT
There's no patching required; I'm actually running pre-RC5 dated 12th February, but I don't see why this shouldn't work with RC4. You need to put those insmod commands into your own startup script.
I suggest you start with basic stuff: for example, try logging all broadcast packets which hit the box.
# insmod ebt_log
Using /lib/modules/2.4.30/ebt_log.o
# ebtables -A INPUT --dst ff:ff:ff:ff:ff:ff --log --log-arp --log-ip
... now send some broadcasts, e.g. from another machine ping a non-existent LAN IP address ...
# logread
Then move onto whatever functionality you want your "transparent firewall" to do. If it's packet filtering, add rules to the FORWARD chain. If you need to do something fancy like masquerading to the same MAC address, read the documentation at http://ebtables.sourceforge.net/ and http://ebtables.sourceforge.net/examples.html
In any case, you will first need to bridge together than WAN and LAN ports using the Linux software bridge: remove all the wan_* settings and add
lan_ifname=br0
lan_ifnames=vlan0 vlan1
HTH, Brian.