Apparently the Dream World is up.

[Cshad]

Pokemon that come as Male only though cannot have egg moves and their DW abilities. The classic example would be Speed Boost Torchic, who cannot have Batton Pass due to it being an egg move.

Pokemon that come with both genders can pass on egg moves + the DW ability so long as the Pokemon with the DW ability is female, as only the male can pass egg moves.

So basically DW + Egg moves =/= illegal. Only event DW Pokemon (i.e The Evee evolutions, Torchic, Venasuar etc.) cannot have egg moves.