[c-nsp] 3750 Multicast Problem

[Tim Jackson]

Got a 3750 with a bunch of multicast sources on it coming from Vlan101 and
Vlan99:

int vlan99
ip address 10.16.99.1 255.255.255.0
no ip redirects
no ip proxy-arp
ip pim sparse-dense-mode
load-interval 30
!
int vlan101
ip address 10.0.0.202 255.255.255.0
no ip redirects
no ip proxy-arp
ip pim sparse-dense-mode
load-interval 30
!

My destinations for this are some routed interfaces on the 3750:

interface GigabitEthernet2/0/2
no switchport
ip address 10.255.255.1 255.255.255.0
ip access-group customer-in in
ip access-group bl-out out
ip pim sparse-dense-mode
ip igmp static-group 225.101.4.2
ip igmp static-group 225.101.4.4
ip igmp static-group 225.101.4.5
ip igmp static-group 225.101.4.17
ip igmp static-group 225.101.4.30
ip igmp static-group 225.101.4.58
ip igmp static-group 225.101.4.8
ip igmp static-group 225.101.4.104
ip igmp static-group 225.100.4.2
ip igmp static-group 225.100.4.4
ip igmp static-group 225.100.4.5
ip igmp static-group 225.100.4.17
load-interval 30
speed nonegotiate
!
ip access-list extended bl-out
deny   igmp any any
deny   pim any any
permit ip any 225.100.4.0 0.0.0.255
permit ip any 225.101.4.0 0.0.0.255
ip access-list extended customer-in
deny   ip any any
!

My problem here is when we turn this up, no matter what is setup on the
interface (even pim neighbor filters, the acl, etc) the far-end sees a PIM
neighbor form and the 3750 becomes the DR which effectively breaks the rest
of their multicast:

Jan  9 01:18:28.037 CST: %PIM-5-NBRCHG: neighbor 10.255.255.1 UP on
interface Vlan100 (vrf default)
Jan  9 01:18:28.041 CST: %PIM-5-DRCHG: DR change from neighbor 10.0.0.1 to
10.255.255.1 on interface Vlan100 (vrf default)

The 3750 never sees a neighbor come up, but that log is from their 7600,
after they see this, everything breaks...
Any clue?