Iptables --reject-with tcp-reset

Using RH9.0 stock RH kernel 2.4.20-20.9
I am using the following rule in iptables:
-A remote-tcp-client-request -p tcp -m tcp --dport xxx -j REJECT
--reject-with tcp-reset

I have sniffed when testing and the incoming test packets get sniffed but no
response is even generated so it is not due to any conflicting output
rules. When using just the reject jump the usual ICPM response is
generated.lsmod shows the reject module to be loaded. Has anyone one else
seen this or know of a current bug? Or am I missing something here? Are
there any sysctl settings for example that would block the kernel from
generating such response packets?

Google returns nothing indicating current bugs and the netfilter site is
currently unreachable.